May Corn 25 to 30 higher
May Beans 20 to 30 higher
May Wheat 75 higher
The first chart below is the corn continuation chart. Note the three different uptrend lines just above the arrow. Each one reflects the trend for a shorter period of time. Corn settled sharply lower Friday, yet stayed above all three uptrend lines. That is strong!
Three weeks ago tonight, the soybeans gapped higher. We all wanted to know if it was a “measuring gap” or an “exhaustion gap”. I had written we would know by Friday of that week.
“Measuring gaps” are like how many miles to a given town along the interstate only we are talking cents to next peak in price.
“Exhaustion gaps” tell us the uptrend has run out energy and the rally is over. It is like seeing a sign that says the next gas station is 532 miles after you passed a gas station 30 miles back.