CORN and SOYBEAN fall after forecasts for large crops from South America

Forecast for good harvest in Brazil sent prices of corn and soybeans to new lower values.
The best harvest ever in Brazil can push the prices of corn and soybeans down and to significantly increase the supply and stocks worldwide - said the Ministry of Agriculture in the United States.
The perspective in this kind of business is crop to continue to grow globally and this would affect much of the income of farmers, particularly those who export their goods across the border.

The Ministry of Agriculture in the United States say that this year the Brazilian harvest of soybeans will be much stronger than expected, it will rise from 104ml. tons to 108ml. tons in February. The production of corn in Brazil is expected to grow to 91.5ml. tons of estimated 86.5ml. tons.

The ministry also surprised traders futures on soybeans, saying that the US will cut its forecast for exports to 25ml. bushels. This means that the country will remain very good, which will increase the stock, and hence the price will fall further.

Technical analysis on CORN and SOYBEAN

CORN:
Chart: D1

The price is break upward channel, level of horizontal support and now falls as most likely make a first wave on 1 2 3 formation.
Indicators: CCI(50) crosses 0 from above to down, meaning that downward starts a new wave in the futures price. CCI(14) is in the area of ultra-sale - also a negative signal.

50SMA and 200SMA are still bullish crossover and no indicate a decline.

Crossing price below 200SMA and subsequent correction would give us better levels to sell with small stop order.

SOYBEAN:
Chart: D1

The price is punctured ascending channel, horizontal support and passes under 50SMA and 200SMA, currently forming a new descending channel. Price adjustment in near horizontal resistance and now the upper limit of the channel would give us good opportunities to sell short stop.

Indicators: CCI(50) is passed down from -100, which strongly negative signal and shows us that it is in a downtrend. CCI(14) is currently crossed -100 bottom, which means that short-term movements may Long and enable us to sell a trend.
50SMA and 200SMA are still bullish cross.

Jr_Trader_P_Milanov

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