A drop to $6.79 could make this wave count invalid, a bearish target of $6.67-1/2 will be established accordingly. On the daily chart, corn could be riding on an extended fifth wave.
A retracement analysis on the trend reveals a target zone of $7.03-1/2 to $7.18-1/2. Support is at $6.69-1/2, a break below which may cause a fall to $6.58.
Crop scouts on the second day of an annual three-day tour of Kansas projected an average yield for hard red winter wheat in the southwestern portion of the state at 56.7 bushels per acre, up from 47.6 bushels in 2019.
The contract consolidated above a support at $15.79-1/4 for a few days. It is facing a stronger support at $15.58-1/2, which may hold and trigger a bounce as well.
Wheat futures easing as traders stake out positions ahead of USDA report.
Corn futures traded higher for much of the overnight trading session, but gave up most of their gains after the forecast for Brazil's corn crop topped market expectations.
Such a combination suggests a strong bullish sentiment, which simply ruins the least chance of a deep correction. Wave pattern suggests a further extension of the uptrend.
A study on the first month continuous chart suggests a 14% gain from the current level. When applied to the July contract, this percentage indicates a target of $8.50.