Sep Wheat - 1 to 2 Lower
Dec Corn - 1 to 2 Higher
Sep Beans - Steady to 2 Lower
Nov Beans - Steady to 1 Lower
Sep and Dec Wheat are taking their time forming the saucer bottom formation. Taking good time to form a base is constructive for a stable up trend to begin - not so different than a highrise building - The taller it is built the more substantial foundation it needs. I don't think the 752 low from Aug 8th will need to be tested again. Today's low at 759.5 seemed to attract heavy fund buying.
Sep and Dec Corn support from yesterday held and Sep was stronger than the Dec contract today - This bull spreading bodes well for nearterm strength/buying for all contracts of corn.
Talking about spreading, the Sep/Nov soybean bull spread increased about +11 cents today. With the Sep contract leading this much it is likely the fund buyers are coming back in to begin another leg up.
Unique to Sep Beans today - it painted an inside/narrow range day bar today. The range tied in range exactly the Aug 8th bar of a 25 cent range. Otherwise, this is the smallest range day back farther than I can count. This means it was an energy building day, and that tomorrow should be a breakout up day with a much bigger range than today. We will watch and see.
Here is a blowup daily chart of Sep Beans - IDNR7 - Inside Bar/Narrow range of at least the previous 7 bars. The trading strategy from the book "Street Smarts" by Larry Connors and Linda Raschke for a day like today is to place a sell stop 1 tick below the low to enter short and a buy stop 1 tick above the high price to enter long of today.
