March Wheat - 3 to 4 Lower
March Corn - Steady to 1 Lower
Jan Beans - Steady
Remember over the weekend Roger wondered if March or July Corn would also need to close that gap up from the August rally just as the December contract did last Friday. Well, it turns out March did have to do that and it occurred today.
The bottom of the gap is 638 in March Corn and today's low was 637.75. Because the March contract is the front month (most liquidity), it makes sense that only closing the Dec Corn gap (currently in delivery) would not complete the business at hand.
There is the possibility that the downside is not complete. The Corn continuation gap is where the December gap was - 631. This is about 9 cents from today's close. I am showing you both charts, the March & daily Continuation, for a good perspective. The most likely scenario is not having to close that gap at 631, but sometimes I sound like a broken record. The March chart will be first.
The Soybean complex continues to have multiple personalities - Jan Soymeal was up +8.10 to 432.20 as it continues to experience follow through buying up from the big triangle breakout. Check out today's chart.
Jan Soyoil continues selling off (while meal rallys), leaving Jan Beans with no idea what to do. A possible downside target in the January Beanoil is 51.00. Above this is another possible target near 56.00 Today closed near 62.76 and because the beanoil chart is pretty much selling straight down, another downside measuring gap is possible.
There is much to consider with Jan Beanoil, but there are a lot of notes on the chart so that you can try to make sense out of it.
Jan Crude Oil update: Soybean oil's weakness is undoubtedly affecting crude. Therefore, will today's low of 76.77 hold for tomorrow's trading day - don't know. However Jan Crude is surely forming a good looking inverted Head & Shoulders pattern. See what you think about the Jan Crude chart.
I believe the 2 day correction is complete in the Dec S&P. The current backfill is about 70% of the previous up leg, and it nailed the closest uptrend line just before the close - you will see what I'm talking about on the 2 hour S&P chart below.
