Ag Analysis Report - 4/21/19...Is Corn Forming A Bottom???
China is considering a U.S. request to shift some tariffs on key agricultural goods to other products so the Trump administration can sell any eventual trade deal as a win for farmers ahead of the 2020 election, people familiar with the situation said.
Another person said China would consider shifting the tariffs to make it easier to meet a proposal to buy an additional $30 billion a year more of U.S. agricultural goods on top of pre-trade war levels as part of a final deal. Last July, China had levied punitive tariffs on American goods including soy, corn, wheat, cotton, rice, beef, pork and poultry in response to U.S. duties.
This is a monthly chart going back to 1971 and price seems to love this $320 to $360 band.
Price is respecting a longer term and shorter term uptrend line.
Price is also respecting the weekly demand at $356.
However, if price is going to move higher, it must first break the daily supply at $374, which would also terminate the downtrend on the daily chart.
This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.
These commodities will be the low hanging fruit of the trade deal but I think it is mostly priced in which is not a great point considering what would happen of it doesn’t happen.
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