Future farming have greatly benefited from the upward revision of demand forecasts and the stock reductions. But as always, once all the media have seized upon the news of the strong prices of maize, now the situation seems reversed, at least until the opening of the CME at 16.30 CET.
Please note that the Swiss franc weakened dramatically, thanks to good figures including U.S.. The euro could again test the major resistance of 1.30 CHF, remains to be seen whether our single currency will succeed in continuing the momentum ... Also note that BNP Paribas is bullish on the EUR / CHF.
The crude oil futures fall to fall far before the release of weekly oil stocks (one day late due to Monday holiday), we're currently under $ 90. It will be interesting monitor behavior during this level if they join the meeting. But back to our corn!
The contract is in a bullish channel well defined, which led courses 505 to 665 $ in the space of two months. For now, there is no cause for alarm. Nevertheless, I think it is good to note that the RSI has turned down after reaching the overbought zone (not necessarily a very appropriate indicator corn, but is).
Since the opening of Chicago Wednesday, January 19, the contract has lost more than 4.5%, which is far from negligible. It is true that the meeting was quite tense, with the most important U.S. indexes falling since November I believe. And then the market had hoped that China is turning to corn to feed its population, yet it is that substitutes are on his shopping list. But this you it justify such a drop of corn futures? So simple profit taking, or end of upward movement?
I'm assuming this is a stall a bit exaggerated, and this is how I planned to respond. If the contract maturing in March 2011 were to go under $ 630, then we should worry. Under $ 627, we would enter the gap just waiting to be filled. Thus, I prefer buying at the moment, without having a position. I will go short if ever evidence were to indicate that the gap could be bridged. First objective on the $ 622 which is the moving average 20 sessions, then $ 612 if it is crossed.
It's time for the opening of Chicago. Happy Trading!
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