|
Northwest Iowa | Look at a Dec corn chart. The low day was June 30. First Notice Day. End of the quarter when investment some funds clean up their positions to show actual gains or losses for their clientele. Open Interest in the July contract was down to only those who actually wanted the bushels. There is a possible Key reversal on that day. Not a perfect example but a new low for the move and the high taking out at least the previous day's high and closing well. Now we have seen follow through. The one thing that I would have liked to put some icing on the action would have been a very heavy volume of trade. Pretty good action, though. We (I) don't know for sure but, WD Gann talks in his book to watch for hard, sharp move lasting 6-7 weeks. If it exceeds that, then 13-14 weeks. Could be another increment but that is getting ahead of ourselves. This could be larger bull market unfolding. Broadly there has been pretty good demand for $4 corn as most end users are making good money using it.
Beans are a bit different as they have gone further up and looked more like a fledgling bull market since the major low in August of 2024. A bull market label may be a bit strong, but the bear market looked to have ended. Soybean oil has been leading and is historically high priced. Meal is dragging. Meal leadership usually gives a stronger move. About 3/4 of the bean crush is meal. Nov beans are only a few cents from their spring high at 12.14. The monthly chart has a near term high around 12.29. Basis on both C&S in my area has improved but still needs improvement. | |
|
C&S
