Trend for corn prices
On January 7, 2016, March corn prices were trading near the key support level of 350 cents per bushel for the third consecutive trading day. Prices successfully held above the key support level before the upcoming key data release. The volume of the contract increased by 10.1%, and open interest declined by 0.36%.
The consensus projection is that prices might continue their downward movement with the huge supply and weak demand. Key moving averages were substantially higher than the current price levels.
The above graph indicates that prices could be in the range of 345–360 cents per bushel in the short run.
Prices that were significantly lower than the consensus USDA (U.S. Department of Agriculture) Weekly Corn Export Sales adversely affected futures prices on January 7, 2016. Weather conditions in Brazil supported output sentiment and pushed corn prices down.
The US dollar depreciated by 1.0% on January 7, 2016, and supported corn prices. A low US dollar supports US goods in export markets.
On January 7, 2016, stocks for corn trading and producing companies fell. CHS (CHSCP) fell 0.52%, continuing its declining trend. Ingredion (INGR) fell 1.4% for the second consecutive day. After rising two consecutive days, ConAgra Foods (CAG) fell 3.4% on January 7. The PowerShares DB Agriculture ETF (DBA) fell 0.40%, continuing its two-day decline.