Corn prices are still under pressure

Corn futures prices fell due to fund and technical sales, but corn trading in the United States is likely to recover. The corn export inspection volume was lower than the previous week and last year. It too fell short of USDA projections, with China and Japan being its primary export destinations. While demand for corn exports has not surged as projected, some purchasers have chosen to wait for Brazil's second crop, which has yet to begin harvesting.

Corn futures were down 2 cents at the start of the week, following a major sell-off in corn since late February, along with the present economic concerns. While the weather in Argentina remains dry, the projection for private sector agricultural harvests in Argentina has dropped by 3 million tons.

Corn futures in the United States remain under pressure from economic concerns, fierce rivalry for the global grain export industry, and estimates for the amount of rain predicted next month, which is likely to have a beneficial impact on planting trends.

Meanwhile, the USDA reports that corn planting in the United States is 92% complete in 2023, which is higher than the five-year average of 84%, with the government projecting an increase in corn supply in 2023-24 due to expectations for a record harvest. This is complemented by increased output or supply from Brazil, which adds to price pressure. Brazil's overall corn production is predicted to rise from 125.1 million tons to 127.4 million tons.

Russia is emphatic that the Black Sea Grain Initiative, which was extended in November, March, and earlier this month through July 18, will not be extended again. Unless Russia's export restrictions on agricultural items, particularly fertilizers, are lifted as promised.

According to the United Nations, the top three destinations for Ukraine's grain exports are China, Spain, and Turkey, with corn being the most exported agricultural product, followed by wheat and sunflower meal.

Data for Technical Analysis (5H)

Resistance : 594.07, 594.43, 595.00

Support : 592.93, 592.57, 592.00                   

5H Outlook

Source: Investing.com                               

Buy/Long 1 If the support at the price range 592.43 - 592.93 is touched, but the support at 592.93 cannot be broken, the TP may be set around 594.12 and the SL around 592.20, or up to the risk appetite.

Buy/Long 2 If the resistance can be broken at the price range of 594.07 - 594.57, TP may be set around 595.50 and SL around 592.50, or up to the risk appetite.       

Sell/Short 1 If the resistance at the price range 594.07 - 594.57 is touched, but the resistance at 594.07 cannot be broken, the TP may be set around 592.62 and the SL around 594.80, or up to the risk appetite.

Sell/Short 2 If the support can be broken at the price range of 592.43 - 592.93, TP may be set around 591.50 and SL around 594.50, or up to the risk appetite.       

Pivot Points Jun 01, 2023 02:19AM GMT

Sources: Brownfield Ag News, Grainews