July Wheat - 3 to 5 higher
July Corn - Steady
Dec corn - 1 to 3 Higher
July Soybeans - 1 to 2 Higher
July Soybeans showed strength today relative to corn and beans. In fact, July Soybeans could not even test yesterday's low (2 cents higher = strength) in the face of the sharp selloffs in July Corn and Wheat.
The 1674-75 area functions as good support now and I am anticipating some buying here tomorrow. If July Soybeans can clear the 1706 area and hold for a couple of hours, I will have confidence that beans can make a run back to 1730 area.
We will need for July Corn and Wheat to hold today's lows - Corn - 720.5, Wheat - 1027.25, to have confidence that today was capitulation (longs giving up).
And, considering today's mid-day volume spikes, this should be a fact.
Again, the volume was 30% higher than any day (life of contract). I may have never seen this much volume before. I suspect new money is flowing into commodities and grains specifically. There is a huge supply of cash in the world.
Overall this enormous tension between bulls and bears is beginning to show itself or express. This most likely is the beginning stages of the built up/stored energy in both July Corn and Wheat and July Soybeans starting to flow into action.
As stated earlier we will have more volatility and bigger price range days (more up than down) moving forward this summer.
July Crude Oil update: Calling a top in a market is difficult and can be dangerous (if you're trying to get short (sell). The July contract made a new contract high yesterday at 119.98. The old high in March was 116.43 (there is some selling pressure). However, the continuation chart high (rolls forward every month) occurred at 130.5.
Therefore Crude is now in no man's land (bull/bear battle). Firstly there is good support from 113.75-112.50 (place to go long - It should move up to the 118.50-120 level again. From there we will see how it responds. The weekly (long term force) is still in a strong uptrend so one must be very discerning (picky) going short.
If July Crude finds support around the 120 area, there could be a swift move to 130+.
Here is the updated July Crude Oil chart.