CBOT corn targets $3.85 per bushel

• The surge on Tuesday looks strong enough to confirm a break above $3.80-1/2.
• Corn may extend its gains to $3.86-1/2.

SINGAPORE: CBOT March corn may break a resistance at $3.80-3/4 per bushel and rise towards $3.85.

The resistance is identified as the 38.2pc retracement of the downtrend from $3.94 to $3.76. Before overcoming this barrier, corn may retreat moderately to $3.81, a support established by a falling trendline.

The contract has climbed above a bullish wedge, which was confirmed as a bullish pattern, suggesting a target around $3.94. A realistic target will be $3.85, which will be available when corn rises above $3.83-1/4.

On the daily chart, a bottom could be developing around a support at $3.76-3/4, the 14.6pc retracement of the downtrend from $4.11-3/4 to $3.71.

The surge on Tuesday looks strong enough to confirm a break above $3.80-1/2. Corn may extend its gains to $3.86-1/2.