May Wheat - 1 to 2 Lower
May Corn - Steady to 1 Lower
May Beans - 2 to 3 Lower
As you know, I follow the Soybean May/July spread very closely. We are looking at the line daily chart to see the close and today marked the highest close yet at 23.5 cents. Last year on this day the same spread for 2022 closed at 17.25 cents for comparison.
This indicates that demand is continuing to ramp up. The May contract shorts in this spread are beginning to be squeezed out. Check out today's chart with the new high close. The red arrow indicates the point where the spread accelerated - becoming stronger.
May Soybeans sliced right through the 1453 and 1460 resistance levels with little hesitation - bull strength is building. These 2 areas now become support. Also, the bean open interest increased 7402 contracts yesterday, confirming new buying happening on a nice up day. Support is 1462-62 and the next target higher is 1478, then 1500. Check out the current May bean chart.
September Soybean Meal had a big, range expansion day higher, today. I had said earlier that it would rebound to at least 430 and today's close was 430.90. There is not much resistance above to stop the buying. Sep Meal will probably retrace all the way back to 454.4 in the near-term. Here is the daily Sep meal chart showing today's big green up bar.
May Wheat is continuing to revolve around the 700 area. I am raising support to 692 and 720 is the next objective higher. There is very little change to today's May Wheat chart. However, there is a new line above price drawn across swing highs acting as resistance.
Today was also a slow day in May Corn, marking a higher high then backfilling. This is a wider view of Corn with the daily continuation chart where you can see the trendline above targeting 695 to 700.
Today was a moderate up day in May Crude Oil, as it finished up 0.77 to 73.58. The high of the day was 73.93, with a small reaction to the resistance there. Support is about 73.00 and the next target higher is 78.00. Check out today's chart.
Many commodities are in the process of going higher with the US Dollar continuing to fall in a high tide lifts all boats situation. The grains have their own reasons for going higher, but the macro-commodity situation provides some additional up pressure.
Another strong commodity of late is cotton, with the May contract trading limit up 3 cents today. I have talked about the weekly chart structure of cotton indicating much higher prices, eventually.
However, since last November, cotton has been stuck in a range between 78 and 90. Recently, it tried to selloff below the range but that was met with strong buying and today the May contract rallied to 82.52 up +3.00.
I believe cotton will continue to mark up prices to test the top of the range at 90 cents and perhaps breakout of the top. I will update cotton at that time. This is the current weekly cotton chart from Barchart.