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Agricultural Commodities

Is Corn Price on the Edge of a 25% Drop?In this idea, I am trying to read and forecast the behavior of the chart in the next 4.5 months . I do not follow corn production, harvest, demand, etc. Since April 2022 (its 9-year highs) has lost about 40% . Its relatively long-going bearish trend means that most of the drop likely has happened. Let's quickly study previous drops that lasted more than a year and erased more than 40% of the corn price. The last one started 11 years ago. It happened during world economic growth. The price lost more than 61% for 26 months of the trend. Another drop occurred during the GFC and lasted for 24 months. Corn lost 60.5% of its price. Important to note that the price reached its lowest point in December 2008 (in the sixth month after the drop started), then the price fluctuated and reached about the same level in September 2009. Considering the crisis and its trend low reached in 6 months, it is not the perfect example to compare with the current 2022-2023 corn price trend. Let's continue to delve into the past! 44% tumble was printed between April 2004 and November 2005, i.e. 19 months . Sending back 17 years ago, we can see a 64.4 % drop in 25 months . Here we are in 1983, the era of high dollar inflation (and not only). The Fed chair Volcker Jr. is fighting with inflation ECONOMICS:USIRYY , and America is recovering from its 1979-1982 recession. The world economy is starting to recover from recession/slowdown too. Between late August 1983 and February 1987 ( 43 months ), corn prices fell by 61.9% . These data series are not enough to firmly generalize bearish trends . Besides, price movements in the past do not determine possible future patterns. We can gently conclude that a bearish trend in corn prices that lasts more than a year could last between 19 and 43 months and show a drop between 40 and 64.4%. In view of those facts and the performance of the corn daily prices in the last 1.5 months, I forecast several scenarios. In the first one, I expect that the price would break the 469-470 support zone and come to 400 cents per bushel until the end of September . Then I expect some correction lasting 3-5 weeks. And the realization of scenario #1.5 (continuation of scenario #1), we could see a breakout of 400 cents and move to 345 cents per bushel before the end of the year . That would be the low or almost the low of the current long-term bearish trend for maze price. Combined scenarios #1 and #1.5 would mean minus 25% from the current price and a drop of 57.5% since April 2022. There are two alternatives . In scenario #2 after reaching 400 cents, the price would return to 470 cents . In scenario #3 the current support zone would be a minimum of the trend for the next 4.5 months.
CBOT:ZC1!Short
by Nikita_Kalinin
Corn: Prepare to pop 🍿Corn has continued to sell off over the last few days and is now approaching our blue buy zone from USX 496 to USX 470. The downward movement in the form of the blue wave (b) should end there. Subsequently, we expect the blue wave (c) to rise to around USX 600, making it worthwhile for prospective buyers to place long orders in our blue buy zone. Our alternative scenario, with a 25% probability, occurs if the price falls further than we expect. In this case, a break of the support level at USX 474.25 would give it significant downside momentum that buyers should take note of.
CBOT:ZC1!Long
by MarketIntel
1
Wheat: Time for the turning point ⤴️🚀The recent downward movement has brought the wheat price into our blue trading zone and thus the minimum requirement of the current blue corrective wave (b) has been fulfilled. We expect it to go a little lower, but gradually the price should now form the end of the wave, allowing long entries. In the further sequence, we see the price rising above the resistance at USX 807.25, where we locate the high of the turquoise wave A. However, if the bears dominate and push the price lower, there is a 25% chance that the price will fall below the USX 611.25 support level, which buyers may want to keep in mind.
CBOT:ZW1!Long
by MarketIntel
Soybeans poised for a drop?Soybeans have certainly caught our attention as a classic head and shoulders pattern has emerged, suggesting a possible trend reversal. This implies a potential drop equivalent to the height from the head to the neckline, taking us towards the 900 level. Could this be signalling more downside in the soybean market? The current price action is intriguing as an attempt to break the neckline was rejected and prices now hover just below the neckline. Is this the prime moment to consider a short position on soybeans? We think it's worth exploring, and here's why... As we’ve last pointed out in the “It’s Corn!” idea in March, prices of the 3 major agriculture crops, Soybean, Wheat and Corn generally move together. Back then, we were highlighting the excessive premium in Corn futures as well as the break of a technical chart pattern. Now, we're witnessing a similar tale with Soybean stepping into the spotlight. From 2019 until now, these three crops have jockeyed for position in terms of percentage gain. Currently, Soybean is in the lead, when compared to Wheat and Corn, in terms of % gain from pre-COVID times and the onset of the Russia-Ukraine conflict. Another way to look at it is to compare the ratio between Soybean & Corn as well as Wheat. The Soybean/Corn ratio is now at the higher end of its 7-year range, and while the Soybean/Wheat ratio not as extreme, is still closer to its range top. Another interesting dynamic we can look into is the Natural Gas – Fertilizers – Soybean dynamic. As natural gas is a key input in fertilisers production, the spectacular fall in natural gas prices has preceded falling fertiliser prices. This in turn, impacts soybean prices as well. Hence, we see a potential downside for Soybean as it trades at a premium as compared to Corn & Wheat. We can consider a short position on the Soybean Futures at the current level of 1340 with a stop at 1450 and take profits at 1250 followed by a subsequent take profit level at 900. This will allow profits on the anticipated downward move while also considering the head and shoulders pattern's target. CME’s Soybean Futures is quoted in U.S. cents per bushel. Each 0.0025 increment equal to 12.5$. The charts above were generated using CME’s Real-Time data available on TradingView. Inspirante Trading Solutions is subscribed to both TradingView Premium and CME Real-time Market Data which allows us to identify trading set-ups in real-time and express our market opinions. If you have futures in your trading portfolio, you can check out on CME Group data plans available that suit your trading needs www.tradingview.com Disclaimer: The contents in this Idea are intended for information purpose only and do not constitute investment recommendation or advice. Nor are they used to promote any specific products or services. They serve as an integral part of a case study to demonstrate fundamental concepts in risk management under given market scenarios. A full version of the disclaimer is available in our profile description. Reference: www.cmegroup.com
CBOT:ZS1!Short
by inspirante
SBUX to ~$118.74, try for a shortSBUX gave the perfect automatic re-entry after tagging the mid-point pivot and returning to our original entry. Following the rules and reloading would have already ensured you now have your full investment lots, risk free. With no downside other than a $0 gain potential it's a good chance SBUX goes for it's $118.74 target. Based on how it pivoted down straight from it's midpoint on the first touch take the bet and to try getting short at $118.74 with a tight stop. If it blows through the final d-target then there's more upside coming. But chances are we see a reversal from the d-target. Don't get greedy though and take profits early on that reversal to ensure lock in your risk.
NASDAQ:SBUXShort
by pinochleprince18
Robusta hit the target after 2 years at $28.00I don't know about you but I prefer Arabica Coffee to Robusta. It's sweeter, it's fuller and it's not that bitter. Anyways, I sent out this trade idea in September 2021! The price broke above the Falling Wedge and there were strong signs of upside. This trade idea was a slow pace and anyone who held onto this trade, most likely would have made very little money due to the daily interest expense charges. It really does add up. And unfortunately, we traders can't treat these markets like medium to long term investors who deal with derivatives. Anyways, the target hit at $28.00 and the price looks to be consolidating here before further upside. Hopefully, a new pattern forms and we can get wired back into the trade. INTERESTING FACTS ABOUT THE ROBUSTA COFFEE COMMODITY Second Most Traded Coffee: Robusta is the second most traded type of coffee, following Arabica, in terms of global market demand and trade activity. Price Determination: Robusta coffee prices are influenced by factors such as weather conditions, crop yields, global supply and demand dynamics, currency exchange rates, and geopolitical events. Use in Blends: Robusta coffee is often used in coffee blends, alongside Arabica, to provide a stronger and more full-bodied flavor profile. Coffee Exporter Revenue: Robusta coffee exports contribute to the revenue of major coffee-producing countries such as Vietnam, Brazil, Indonesia, and Uganda, driving economic activity and foreign exchange earnings.
ICEEUR:RC1!Long
by Timonrosso