SINGAPORE: CBOT March corn remains neutral in a zone of $6.73 to $6.79 per bushel, and an escape could suggest a direction. The sideways move in the range could turn out to be either a continuation pattern or a bottom.

The following move will depend on where the break would occur.

A break below $6.73 would confirm the extension of the downtrend towards $6.63-1/2 to $6.68-1/4 range, while a break above $6.79 may lead to a gain into $6.82-1/2 to $6.85-1/2 range.

The bias seems to be towards the downside. On the daily chart, corn looks reluctant to fall towards $6.57.

Conab cuts forecast for Brazil’s corn crop output

Maybe a little more time could be the key to the following direction.

Indeed, a close below the Wednesday low of $6.72-3/4 would be a convincing signal of a deep fall towards $6.57.