681 to 682 did in fact bring the fund buyers out in May Wheat on Friday's report. The close for the day was virtually unchanged and I am leaning towards the odds of 681 holding support for another leg up that begins next week.
However, there is a smaller chance that 671 to the downside needs to be tested. Here is Friday's 2 hour chart. Notice how all the red and blue lines affect price going back to the left shoulder.
Friday's news was moderately bullish for May Corn and prices closed up 9 cents to 658.50 after finding some resistance at 660 to 664. While 670 is the inverted head & shoulders target, May Corn should eventually rally to 697 to 700.
Just a few pennies down at 655 should hold support. After backfilling some from 700, I expect corn to continuing marking higher prices towards 783. Here is the daily continuation corn for a larger perspective.
May, July and November soybeans all had impressive, large up days, as expected, based on November's narrow, inside day on Thursday. Friday's news was very friendly, and I expect the rally to continue next week.
Friday was the biggest up day in the front month bean contract since last September 12th, indicating things are heating up in this market. Sunday night's open will tell us a lot of information about how the week will unfold.
Will May Beans gap up, open steady and correct down to 1480? It was stated that a pullback was more likely from the 1515 area, but this is not guaranteed. If the buying pressure is too great, beans will open higher on Sunday.
1585 is a nearterm target as this will be the close of the liquid continuation gap. I am aware that the bean carryout could be a real issue this season and that soybeans may have some rationing to do before July or August.
We will wait and see if it needs to occur sooner. Simply put, we will know more after an hour of trading tonight and I will try to give a bean update then. There are a few possible targets above on the bean continuation chart. Check it out.
May Crude Oil continued it's march higher on Friday towards 78 as it marked higher highs and lows without needing to backfill to 71.67. Friday's close was 75.70 and it is interesting that 1.5 times the first leg equals about 78.
Remember that the 2nd leg up in financials is normally an extension of the 1st leg. Crude was stairstepping up the trendline on Friday. Check out the chart.
The US Dollar appears to have started a 2nd down leg on the weekly chart. The swing measure projection from the 1st down leg's length is 92. Continued selling here will be supportive to US commodities. check out the weekly dollar chart from barchart.