Corn may extend its slump this year to the cheapest level since 2010, according to technical analysis by INTL FCStone Inc.Previously:
After the December contract dropped to a then 31-month low of $4.895 a bushel on July 5, prices rebounded to $5.2825 on July 11, creating a so-called bear flag that signals a drop to $4.47, the lowest since September 2010, said Matt Ammermann, a commodity risk manager at FCStone in London. A bear flag, named for its resemblance to an inverted flag on a pole, occurs when a security is falling, pauses and consolidates, and continues its drop.
“The market now is going to be chewing lower, but it’s probably not going to be a drastic drop because yields are still a big question mark in the U.S.,” Ammermann said in a telephone interview yesterday. “Just going by technical support, we’re looking at $4.47, although psychological support would be $4.50.”...MORE
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