SINGAPORE: CBOT corn is expected to break a support at $5.86-1/4 per bushel and fall towards $5.54.
The consolidation above the support has almost been done. It has been shaped into a bearish triangle, which suggests a target of $5.34-1/4.
Along with the preceding fall from $7.54-1/4, the triangle makes up a pennant, which suggests a much lower target of $4.90.
Resistance is at $6.06, a break above which may lead to a gain into $6.18-1/4 to $6.38 range.
Corn drops as US crop report eases supply concerns; wheat down
On the daily chart, the strong support at $5.95 looks unable to hold after repeated attacks by bears.
A downward wave e is unfolding within a falling channel, towards $5.21-3/4.
With the deep fall on Tuesday, the chance of a bounce towards $6.30 has been wiped out.