Corn Seen Sliding Below $4.50 on Bear Flag: Technical Analysis
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Corn may extend its slump this year to the cheapest level since 2010, according to technical analysis by INTL FCStone Inc.
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.