May Wheat - Steady to 1 Higher
May Corn - Steady to mixed
May Beans - Steady to 1 Lower
Both the corn and soybean May/July spreads backfilled quite a bit today amidst a very negative day in the grains overall. The funds are rolling their positions from the May contract to the July contract and also buying December corn and November soybeans/selling the front months - this is some of the reason that these front month spreads declined today.
This is today's May/July corn spread chart.
On last Thursday's comments I mentioned that the current May Corn correction could take prices to the 650 area. Well, here we are today with corn closing at 649.75, 5 ticks from the low.
There should be a lot of fund buying interest in and around the 650 level, which is an old low marked with a red line, and is also at the 45% retracement level. See what you think while looking at the May Corn 4 hour chart.
May Chi Wheat was all selling today, ending down 17.75 cents at 644, a new low for the move. There is a lower blue line which comes in tomorrow at 636. If there is more selling, the 636 area should have a sea of buy limit orders.
Another calculation which gives us an idea that buying support for wheat is very near is that the last 2 legs (up & down) were 64 and 63 cents, respectively. The current down leg has traded 64 cents - markets like symmetry.
Check out the daily May Wheat chart, noticing the lower blue line and the lengths of the legs.
Along with the general selling in soybeans today, the May/July bean spread came off about a dime. This spread is testing the most recent uptrend line - you will see it on the chart.
The July Soybean contract is testing the parallel line to the upper neckline. Also, the current bean correction is a 57% retracement of the previous 117 cent rally. Markets like the area from 50% to 62% for retracements.
I am not saying there will be no more selling for sure, but July Beans are at a sweet spot on the chart. Here is today's July Bean 4 hour chart.
June Crude Oil found buying interest above the bottom of the gap Friday and today. Will the gap stay open? If it does, remember it indicates that nobody wants to sell that low (area in the gap), and signals a certain degree of bullishness.
If tomorrow finds follow through buying, then we can start talking about prices above 83 again. Take a look at today's crude chart.