Sep Wheat - Steady
Dec Corn - Steady to 1 Lower
Nov Beans - Steady to 1 Higher
As expected, December Corn was able to pull itself up higher today, adding +10.25 cents, to close at 489.75. Today, we are looking at a wider view chart - specifically, the daily continuation where the front month is December because it's the most liquid.
I think we have a double bottom where the first leg up was 91 cents. To measure the target, you take the July 24th high of 572 and add 91 cents to arrive at 663. I believe this move will be fairly swift - similar in beans - inside of 6 weeks?
Check out the daily corn chart, so we can see some higher prices.
We will also check out the daily soybean continuation, where the November contract is the front month. To measure the first target higher you subtract the July 24th high from the June 28th low.
This gives you 178 cents. Similar to a double bottom or W, you tack 178 on to the high price of 1435 and get the price of 1613. This is very interesting and validating, because the other continuation chart marked a high of 1616 during the week of July 3rd on the weekly chart that I showed you yesterday.
Yesterday's weekly chart is built from the front months until contract expiration, so that July high was from the July contract, whereas the same high on today's chart is the November contract. Therefore, we have 2 completely different charts, in the way they are constructed, that yield a very similar answer.
The target high being discussed could be as high as 1636, because there is an old swing high on the left side of the chart that the market may shoot for. After this target is achieved, you will be able to see how the February highs around 1550 will likely act as support.
Here's the bean continuation (November front), indicating a very similar result as yesterday's weekly bean chart.
Back to the continuation wheat chart, which is the December contract. Wheat also marked a solid up day of +10.75 cents, as it is also trying to carve out a double or W bottom. Here is the daily wheat chart.
I came across a soil moisture profile map of the US, on the internet. This dryness with the temperatures is a bad combination.