SINGAPORE: CBOT corn may test a support at $7.75-3/4 per bushel, a break below which could open the way towards $7.67-3/4.

The deep drop on Wednesday confirmed the continuation of the downtrend from the April 29 high of $8.24-1/2.

The trend is riding on a wave C, which could end around $7.75-3/4 or extend a lot to $7.54-3/4.

The strong momentum accumulated on Wednesday indicates an extension of this wave. The current moderate bounce looks like a pullback towards a rising trendline. Resistance is at $7.89, a break above which may lead to a gain to $7.97.

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On the daily chart, a previous wave count has been restored, which marks the April 29 high of $8.24-1/2 as the peak of a five-wave cycle from $5.12-3/4.

A projection analysis suggests a target range of $7.55-1/4 to $7.70-3/4.