March Wheat - 1 to 3 Higher
March Corn - Steady
March Beans - 1 Lower
As expected all 3 grain markets closed on the positive side today after the final 2022 USDA report was released. March Corn & Beans led the way forward with the fund buying spree today, with March Wheat also rallying in sympathy.
The March Corn contract finished up +16.25 and closed almost directly on a fairly substantial triangle trendline. Technicians and traders sometimes draw trendlines with subtle differences. I learned that the most meaningful area is to place the line directly on the edge of the candlestick, not the high or low.
Therefore according to my chart, March Corn closed above the line, indicating a breakout to the upside. We will be looking for follow through buying tonight and tomorrow to confirm the legitimacy of the upwards break. You will see this detail near the top of the chart on March Corn 8 hr chart.
While March Wheat did not finish as strong as corn, it closed above the bottom of the broadening pattern line which marks the swing points of the successive legs. I believe today's wheat action further confirms the low made on Tuesday and the higher low marked yesterday indicates that the fund bulls are in the early stages of gaining control.
Furthermore, today's close is also above a line drawn across the highs of the trading range from Tuesday through today. We are additionally looking for follow through wheat strength for Friday's session. Here is today's 1 hr March Wheat chart.
March Soybeans also had a strong breakout like day, closing above the ascending triangle almost touching the bottom of the old gap to the left. The next order of business will be for beans to challenge that gap again just a few ticks up from today's high. Check out today's (good looking for bulls) updated March Soybean chart.
March Soymeal marked a new closing high for the move today, just about 13 dollars away from testing the daily &weekly continuation chart high from last March. Impressive.
Feb Crude Oil update - Oil basically just marked time today, closing down about 13 cents. We will look for buying strength to resume during tomorrow's trade.
The March S&P nearly made it to it's first upside target today. Remember this target was generated from the sideways range that developed below - the width of the channel is added to the breakout point atop the high side prices. Check out the updated S&P chart.