By IFCMarkets
Estimates of increased US corn planting bearish for corn price
US farmers plan to increase corn acreage as soybean prices have collapsed. Farmers intend to plant 96.99 million acres (MA) of corn in 2020/21, which would be 7.29 MA above last year’s planting -according to the Planting Intentions survey results by USDA. And falling crude oil prices make corn usage for bioethanol production less attractive, lowering corn demand. Ethanol production per day fell 165,000 barrels over week in the week ending March 27. It averaged 840,000 barrels per day – the lowest weekly production since September 2013. Lower demand and higher expected supply are bearish for corn prices.
| Indicator | VALUE | Signal |
|---|---|---|
| RSI | Neutral | |
| MACD | Neutral | |
| Donchian Channel | Sell | |
| MA(200) | Sell | |
| Fractals | Neutral | |
| Parabolic SAR | Sell |
| Order | Sell |
| Buy stop | Below 335.3 |
| Stop loss | Above 354 |
Market Analysis provided by IFCMarkets