Late last week I was thinking December Corn would complete 5 impulse waves up to 595 to 600, and then it would correct for a few days back down to the range of 560 to 540.
Because corn spent more time and price backfilling from Wednesday's high than I originally thought and re-thinking the leg down from 630 to 481, I have changed my outlook.
As stated before, it's most likely the recent low of 481 is a long term low, not just a seasonal low. Further, the continuation corn chart has most likely been in a big A-B-C-D-E correction sideways since the May 2021 highs.
Therefore it is more likely that September and December Corn will mark a longer, extended impulse (with 9 or 13 waves/legs up & down) up above 650, even as high as 672 to 675 before a several day (maybe 2 weeks) correction down will take place.
There is a big gap on the December chart from 671 to 673. The high of that gap on the September contract of corn is at 669. Also, the June 21st high on the continuation corn chart (July at the time) is 672.50. These points are all magnets.
For traders, the most pertinent corn chart is the continuous chart, because this is where all the liquidity is (where the funds trade). Again, using all 3 of these charts together as evidence, my best answer for this current leg up is about the 673 to 676 level.
Please take your time studying all 3 of these charts and noticing the upsloping from left to right, blue supply/demand lines, so you can see why the most likely next balance price is 672 to 676 or higher on the continuation corn chart (currently December contract).
In fact, the blue upsloping line intersects price close to 7 bucks on this continuation chart. When studying these charts, also notice that the current carry from September to December is 9 cents.
As you look at the target area on the September chart, realize that the most likely scenario is for September to gain back on December, possibly to zero. I am saying that as the corn market rallies, the September price will reel in on December - that these 2 charts will probably be close to even (within 3 cents).
The continuation chart is first, followed by December, then September third. I am doing all my writing first so you can scan all 3 charts back and forth, without words in between to possibly get in the way, as seeing the charts is largely non-verbal.
Please note that the 645 gap on the December Corn chart is intraday, meaning that it has less significance. Support for December Corn on Monday is from 526 to 520.
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