Tech Guy Opening Calls & Comments 5/10/23

July Wheat - 2 to 3 Lower

July Corn - 1 to 2 Lower

July Beans - Steady to 1 Lower

July Soybean Meal basically did what was expected today, with one additional piece of evidence. We'll need confirmation with a good up day tomorrow, but not only was today's bar a Doji, it was a Doji-star - this is created when the open/close are essentially the same price and they also occur near the midpoint of the bar.

A Doji-star is a more reliable than a plain old doji. We will know tomorrow with an up day. Check out today's meal chart. The pattern is a triple 3 with a Doji-star.

I did not see it yesterday, but July Beans looks to be forming an inverted head & shoulders on the 1 and 2 hour chart. It points up, so it is bullish. Within 3 cents of today's low at 1402.5 will need to hold to confirm the pattern. Support is 1399.

The distance from the middle of the neckline to the bottom (head) is 51 cents. Therefore as long as beans trade up to the neckline again, you will add 51 cents to the breakout price, which would roughly be 1455. This would project a rally to 1505. Keep your eye on it. Here is today's July Bean chart.

July Wheat just consolidated today, testing yesterday's low of 633 by printing 629.75 for a low price and closing at 640 - a test of the right shoulder. Support for tomorrow is 625. Here is the updated July Wheat inverted head & shoulders.

July Corn ended up not needing to sell off to 575, so the gap was not a measuring gap. Instead, corn aggressively tested yesterday's low of 581 by marking a low of 579 in the very early morning trade.

The fund bulls were patiently waiting for the 8:30 AM pit open and rallied July Corn 15 cents up for a high of 596 and a close of 593. It was a very nice looking and notable rally for the corn 1 hour chart. Tomorrow's support is 589 and resistance is between 601 and 605. Check out the 1 hour July Corn chart.

Of note is the July/September Corn spread, which rallied up to close at 71.25 cents today - The July/December spread is 73 cents, less than +2 cents more. Further, since April 28th the July/Dec Corn has rallied from 48.5 cents to a high of 74 cents today.

This is an aggressive rally and indicates a nervousness about the old crop corn supply. Check out the July/Sep spread chart.

June Crude Oil Update: Oil has been consolidating the last 2 days in a narrow range between 71.34 and 73.89 (current highs). The trend is still higher with the next target being 77.50 +/- 1.00. Support is 71.80. Here's the current crude daily chart.