Dec Wheat - 1 to 2 Lower
Dec Corn - 1 to 2 Lower
Nov Beans - Steady to 1 Higher
December Corn gapped up on the open last night again, and it was not filled. I am losing count - actually no, that makes 3 gaps since 7/25 when the first break-away occurred around price 589, gapping up from a base.
Then last Monday night gapped up after corn crop conditions went down. This gap was another breakaway gap jumping up from a larger base to 631. Finally, so far a third gap up happened in Dec Corn last night at 666.25 on the open.
Yesterday's gap is probably (unless it gets filled quickly) a break-away gap. It also functions as a measuring gap. You measure from the low of 562 up to last Wed high at 671. This equals 109 cents. Then you add 109 to last night's low of 666.25.
$6.66.25 + 109 = 775.25. This is a target/magnet.
There is an unfilled gap in Dec Corn on the left side of the chart at 733 - this is potential resistance where a correction should occur. We will watch Corn and see how it trades in this 733 area.
There is also a gap on the left side of the Corn continuation chart at 782-785 which will also function as a magnet/target as well. The continuation chart is all the front month's trading until last trading day, then the next month takes over.
For example March 2022 Corn traded until about March 14th. Then the May 2022 contract took over - and on about May 13th when July 2022 Corn took over. The 782-785 gap occurred on June 21st - therefore the gap happened on July 2022 Corn's watch.
Hope this makes sense - In summary, Dec Corn jumped up again last night from the big base - meaning it's another upside breakout. The rule of the chart is the bottom of the gap should not be re-visited because that part of the business of the chart is complete. Therefore the breakout area should function as solid support. The energy of Dec Corn is firmly up and the 3 gaps communicate a sense of urgency in marking higher prices.
Last week I said this week should be a stronger up week than last week. This is because there is less resistance on the left side of the chart. The target for this leg up is between 733 (gap) - 749 (this is a swing high to the left).
Here is the 4 hour Dec Corn chart - see if you can see what I'm trying to explain. The first thing to notice is the last bump coming down (labeled) to the left). Notice how this area around 674 is the top of the big W bottom/base formation - it's cleared all the resistance down below and on the left of the chart.
I have no idea why but Sep beans traded down 70 cents today - this dragged down the Nov contract. The Nov bean chart is consolidating just beneath it's neckline. Furthermore, the Nov Bean/Dec Corn spread closed about 2.11 today. I think this is on the low end - later in the week I expect Nov Beans to catch up some.
Dec Wheat jumped up big today, trading out of the top of the range that it previously sold out of to the downside - completing the fakeout/shakeout.
Oct Crude Oil continued to buy up today towards the 100-102 target.