July Wheat - Steady to 1 Higher
July Corn - Steady
July Beans - Steady to Mixed
The spike and ledge topping pattern from Friday in June Live Cattle was washed out today as the bulls made new highs and printed a close of 168.625 just a few cents from the weekly high at 169.425.
Remember the weekly chart has not exactly made a double top yet, as the 2014 high is 171.65. Cattle might very well need to test the area of the 2014 high before the sellers can put a hitch in the uptrend. Here's a reminder of the weekly cattle chart.
Sticking with the weekly chart theme, we are going to zoom way out in Chicago Wheat and look back to the year of 2010 for proper perspective. It appears the bears were not done with there business of selling, as new lows were printed.
There is a line on the wheat weekly chart at the level of 590 +/- 8 cents which is where a lot of support and resistance has been since 2010. This area is a supply/demand balance line. Let's see if this area brings in some buying this week.
Check out the areas with gray ovals on the wheat weekly chart here, and you will see the balance.
Remember the 1288 and 1275 levels that I discussed last week in July Soybeans? Those numbers were calculated with Fibonacci ratios when we were trying to determine where this down leg would terminate.
I got fooled by all the buying in the 6 day range in beans. Last Thursday really convinced me the way the funds bought up all those contracts with price closing near the highs. However, I did say we would need an upside breakout from 1348, which failed to materialize, to confirm a bottom. Patience is the most difficult part of, well, life actually.
Therefore, let's see where the bears need to take the July Soybean price so we can become more assured the low is in place. I am still confident a rally will emerge from this - timing.
The July/August bean spread marked another high today, telling us that demand remains very strong. I will be looking for very heavy volume around 1288 or 1275 for another piece of evidence that a low is trying to form, or a sharp reversal back to 1325 minimum.
Check out the daily continuation chart again so you can see the swing low from last July at 1288.50.
599 was a little too strict for the July Corn support, as they sold them down to 591.50 today, with a close at 594. There is more support at 580 but I believe that level is unlikely and July Corn most likely not mark new lows on this move.
The 500 area proved to function as solid psychological support in December Corn, as it's low is also confirmed. The top of the old congestion area near 515 on the chart proved to be support for today.
Can you spot the small inverted head & shoulders pattern projecting 580? Check out the December daily corn chart.
New crop November Soybeans tested an important level today - the December 2021 low. There were/are many sell stops below this low, therefore, I will be looking for new crop beans to begin a capitulation process. Take a look at the big picture daily November Bean chart.
