CBOT corn may retest support at $3.57

SINGAPORE: CBOT July corn may retest a support at $3.57 per bushel, a break below which could cause a loss into the range of $3.51-1/2 to $3.54.

The support is provided by the 14.6 percent retracement on the downtrend from $3.90 to $3.51-1/2. The bounce from $3.51-1/2 has ended, as confirmed by the deep fall from the May 3 high of $3.71-3/4.

Before resuming its fall, corn may edge up a bit further to $3.66. This moderate gain is regarded as a pullback towards a rising trendline.

On the daily chart, corn is riding on a wave C from $4.03-1/4. This wave was disrupted by a support at $3.53-1/2, its 123.6 percent projection level. Given that the bounce triggered by the support has almost been reversed, the wave C may have resumed towards $3.47-1/2.