SINGAPORE: CBOT July corn may test a resistance at $6.44-3/4 per bushel, with a good chance of breaking above this level and rising into $6.68 to $7.05-1/2 range. The contract has broken a falling trendline from $7.05-1/2.

The break confirmed a reversal of this trend. The strong momentum accumulated over the past two trading sessions may easily push the market above $6.44-3/4.

The sharp surge from $5.47 probably followed a completion of the three-wave cycle from the May 17, 2022 high of $7.60.

Based on this observation, corn may revisit $7.05-1/2, the peak of a wave (B).

Corn, soya, wheat futures set multi-month highs on US weather worries

On the continuous chart, the contract has stabilized twice around a support of $5.68.

It may rise to $7.33-1/2, if considering the pattern a flat which developed from the July 2022 low of $5.61-1/2.

A rising trendline indicates a much aggressive target of $11.03-3/4, which will only be considered when the contract breaks $7.33-1/2.