Dec Wheat - Steady to 1 Lower
Dec Corn - 1 to 2 Lower
Nov Beans - Steady to 2 Lower
From yesterday's December Wheat comments:
"December Wheat sold straight down to the 582-81 - lower support level. This probably indicates the wheat traders are going to mark a five wave/leg triangle."
Wheat, in fact did mark out a 5 point triangle in today's trading - not at the exact prices labeled on the chart for points D & E, but in the ballpark. The action today probably tells us that the correction is complete.
If it is not complete, we will see more sideways back and forth trade. If the wheat correction is complete, we should see prices rally to 597 and then 609. Support is still 582-581. I moved the d label to the left so you can see it, because price bars had covered it up.
Today's 1 hour December Wheat chart is first, followed by yesterday's for comparison.
Yesterday's 1 hour wheat.
From yesterday's December Corn comments:
"Resistance will be 480, then 484. I'm expecting higher close again tomorrow and if this occurs, we have a very solid bottom."
Corn rallied in the overnight market to test 480 on the 2AM bar. It then backfilled the rest of the session, testing 475.50 on the downside then rallying to a high of 483 during the day, missing the 484 mark by a penny.
I don't know if corn will close higher tomorrow for a third day in a row - it may. However, corn will most likely back fill first and test 475 or 473.50 below, before seeing higher prices. If corn can't sell to 473.50, this is a sign of more bullish strength.
Targets above are 585-586, then 590. Above this, 5 bucks. Today's follow through strength from the bulls, makes the 467.75 low, more likely to stick. Here's today's 2 hour Dec. Corn chart.
From yesterday's November Beans comments:
"Support in November Beans should be 1310 for tomorrow."
Soybeans corrected down to 1310.25 during the first hour of daytime trading today, then rallied to close at 1319.75 up +4.25 on the day. Support is now 1315, if the bulls have taken control, which I believe they have.
On the outside chance they haven't yet, the bean bears could test 1307-06 - a retest of yesterday's low. The chart pattern in beans since yesterday's low could be read as an a-b-c, and therefore 1 more selling washout could occur.
Like I said, I'm leaning slightly against this scenario. let's watch - beans can be wild. First resistance is still 1334, then 1342. Think about it this way - a lot of folks are short, some of them want to get out because they've realized beans might not make new lows.
Some have buy limits resting above 1315, some below. The shallower the backfill, the fewer buy limit orders will be executed and they will still be short, but wanting to get out. The rally is partly fueled by this type of engineering/price action because they either have to buy at a higher price or have a buy stop order above today's high - the same idea holds for corn also.
Here is today's 1 hour November Bean chart.
A thanks to Roger and his team for the kind words in his report this morning! It is a pleasure working with this group of fine and hard working folks.