CBOT corn may fall to $3.40-1/2

SINGAPORE: CBOT December corn may fall to $3.40-1/2 per bushel, as it has cleared a support at $3.55-1/2.

The contract could have resumed its downtrend from the June 17 high of $4.49. The trend is driven by a wave C, which is capable of travelling to $3.16-1/4, its 61.8 percent Fibonacci projection level.

The nearest projection level at $3.40-1/2, the 38.2 percent level, is targeted, as this wave has extended below the 23.6 percent level at $3.55-1/2. A bounce from the current level may be limited to $3.54, a resistance established by the trendline rising from the July 6 low of $3.46.

A break above $3.55-1/2 could lead to a gain to the 14.6 percent level at $3.64-3/4.