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| Corn:
Our 4th day higher in 5 days. Now +25 cents off the lows posted last week.
We closed at our August highs of $4.09. So we have already completely taken out our entire August trading range the past week.
We closed above the 35-day MA for the first time since May.
We had a clear breakout of this channel (purple line) and broke $4.03 resistance.
Now we might see some resistance here at $4.09, so do not be shocked if we get a short term set back. But if we can clear it the next stop in my opinion is the $4.23 area which was our July highs.
We had actually been seeing the funds cover the last few weeks, but their buying had been met with farmer selling.
Now that first notice day is out the way, we should see a lot less of that. Making their buying more influential to prices.
I expect farmer selling to remain minimal until we at least get into those July highs of $4.23, then perhaps we run into some. But for now, I do not see a reason for us to get any farmer selling here with prices this unattractive.
Overall I do not see any reason why we couldn’t continue higher from here. I am getting pretty confident the lows are in, but we still need over $4.09 first. Ideally I still want to take out $4.23 before saying we couldn’t make another low.
But the chart looks great and poised to go higher.
We also got a reversal on the weekly chart and then followed it up, which is a very good sign..
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Soybeans:
Above $10 for the first time since August 9th.
Finally break out of that May downward trend on Friday.
We closed above the 35-day MA for the first time since May.
Looks very good here with room to run.
But I would still like to see us make a higher high at $10.42 before calling a definite bottom.
On the weekly chart we also posted a morning star formation on Friday. This is a pattern that forms at the bottom of downtrends & signals a reversal
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Chicago Wheat:
Continues to break out from its lows
Up +50 cents off the lows
Clear break out of the downward channel
Looks really good here. Don’t see why we couldn’t test $5.80 again
If we can clear $5.80 and break out of this range (green box) it opens the door to higher prices
We have problems in Russia, France etc. Wheat prices aren’t going to be adding acres here in the US.
Think wheat is finally ready for another run.
My first target once we clear $5.80 is $6.12 (our 38% retracement from our May highs)
My second target is our 50% retracement of $6.40
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KC wheat:
Gets some follow through following lasts weeks bullish key reversal
Looks like we could have some room to run..
(All charts below)
 (IMG_6685 (full).png)
 (IMG_6731 (full).jpeg)
 (IMG_6686 (full).png)
 (IMG_6730 (full).jpeg)
 (IMG_6732 (full).jpeg)
 (IMG_6733 (full).jpeg)
 (IMG_6734 (full).jpeg)
Attachments
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 IMG_6685 (full).png (76KB - 26 downloads)
IMG_6731 (full).jpeg (65KB - 15 downloads)
IMG_6686 (full).png (71KB - 18 downloads)
IMG_6730 (full).jpeg (90KB - 11 downloads)
IMG_6732 (full).jpeg (61KB - 12 downloads)
IMG_6733 (full).jpeg (58KB - 12 downloads)
IMG_6734 (full).jpeg (50KB - 10 downloads)
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Grain charts breaking out?
