Corn Futures Prices Slump as Bearish Trends Take Hold
The price of December corn futures is trending down, making it a potential selling opportunity for investors. On the daily bar chart for December corn futures (ZCZ26), prices are starting to decline, and the moving average convergence divergence (MACD) indicator is in a bearish posture, with both lines trending downward.
Fundamentally, while excessive wetness has hindered harvesting in the U.S. western Corn Belt, a large corn crop will eventually be harvested this fall. On the export front, the surge in the value of the U.S. dollar ($DXY) may crimp U.S. corn exports in the coming months due to most world trade in commodities being conducted in U.S. dollars.
A move below chart support at last week's low of $5.14 3/4 would give bears more power and become a selling opportunity, with a downside price objective of $4.60 or below. Technical resistance is located at $5.35, where investors can place a protective buy stop.