US Department of Agriculture reduced 2020/2021 domestic corn ending stock estimate by 150 million bushels in December to 1.702 billion bushels, a 8.8% downgrade. And its corn production estimate for the 2020/21 marketing year at 14.182 billion bushels fell below market expectations. At the same time USDA lowered its forecast for upcoming harvests in Brazil and Argentina to 109.0 and 47.5 million tons respectively due to dry weather the two key export countries are experiencing. The short-term meteorological forecast remains unfavorable for both countries. And as corn supply estimates are being revised downward market participants expect Chinese corn imports to increase as demand for feed corn grows with rebuilding of China’s hog herd decimated by African Swine Fever. Higher demand and expected lower supply are bearish for corn prices.
| Indicator | VALUE | Signal |
|---|
| MACD | | Buy |
| Donchian Channel | | Buy |
| MA(200) | | Buy |
| Fractals | | Buy |
| Parabolic SAR | | Buy |
| On Balance Volume | | Buy |
Summary of technical analysis
| Order | Buy |
| Buy stop | Above 542.3 |
| Stop loss | Below 472.5 |