Dec Wheat - 3 to 4 Higher
Dec Corn - Steady to 1 Lower
Nov Beans - 2 to 4 Lower
Somehow my final draft did not get published yesterday on the website. I will try and fill in the gaps/holes.
Starting with Oct Crude Oil: This market corrected down to today's support at 85.17 (actual low 85.06) to form the right shoulder of a Head & Shoulders pattern. Price rebounded nicely from the lows today.
I expect buying back to the neckline (89.40), then an eventual breakout up to 98.50.
Please see the H&S pattern on the 1 hour crude chart.
Dec Wheat traded sideways today and was unable to fill the gap below at 841 - looking more like a breakaway gap which supports the idea of a strong low being in place and higher prices to come. Support is 841 and upper targets are 896 then 943.
Nov Beans had it's biggest up day yesterday in many years, settling near +75 up (limit is 115). I checked back to 2007 and didn't see any others.
Furthermore, the up day in Dec Corn and Nov Beans was accompanied by big, big fund volume and increasing open interest (+9713 contracts in corn and 18,000 contracts in beans). Open interest is the total number of open positions in all months. When it increases a lot on a big up day you know that is new strong handed money on the buy side.
I also heard the funds bought 40,000 contracts in beans (all months) yesterday. That means 22,000 bought from shorts that covered, 18,000 being new longs & shorts. Anytime these things occurs together it normally verifies a strong up trend - a bunch of new hearty fund longs coming in/committing their position.
Dec Corn and Nov Soybeans had a small correction/backfill today. Support for Dec Corn was and is 688 and 683. Targets above (resistance) are 733 and 749, 754.
Support in Nov Beans is 1464 then 1455. Near term Targets above are 1536 and 1556, 1591.
Sep Corn and Beans expire tomorrow.
Now that the USDA report is behind us, the grains will trade this new (mainly bullish) information along with other bullish and bearish information as the days tick by.