By IFCMarkets
Drought in South America could cut corn crop
Argentina is the 4th largest producer and exporter of corn in the world. Paraguay grows not much corn, but it takes the 11th place in its exports to the world. The US Department of Agriculture (USDA) reported that US corn exports totaled 477 million bushels over the past week. This is 1.2 million bushels more than a week earlier and 14 million bushels more than the same week last year. Japan purchased 39% of US corn exports last week. Other major buyers were Mexico, South Korea and Colombia. Note that according to the CFTC, the volume of net short positions for corn has peaked since April 2019. This happened because at the end of April this year, corn quotes fell to a minimum since 2009. Now they are trying to correct upward. If market players have to close short positions, this could trigger a speculative price increase.
| Indicator | VALUE | Signal |
|---|---|---|
| RSI | Neutral | |
| MACD | Buy | |
| MA(200) | Neutral | |
| Fractals | Neutral | |
| Parabolic SAR | Buy | |
| Bollinger Bands | Buy |
Summary of technical analysis
| Order | Buy |
| Buy stop | Above 333 |
| Stop loss | Below 307 |
Market Analysis provided by IFCMarkets
