December Corn, September Beans and November Beans (all contracts) had a bullish reaction to Friday's USDA report. Dec Corn broke out to the upside from it's triangle, 4 day sideways action, and lopsided/upside down head & shoulders formation and closed on the highs. I don't intend to sound like a broken record but all the corn and soybean contracts (front month strongest) are all in powerful uptrends.
The bean contracts completed a 2-3 day correction Friday and closed near their highs for the week. I expect a range expanded week for corn and soybean contracts next week (greater than $1.00). Last week in Sep Beans had a somewhat contacted bar (less than $1.00) compared to the week of July 25 when the range was 193 cents. This week could be in the vicinity of a $2.00 range as Friday was an outside day/higher close - a robust rejection of lower prices.
November Beans will be more muted but still have an up week -$1.00-$1.50 - in this case, contract highs at 1584 would be tested. I expect Dec corn to test the gap between 675-682, maybe more. Next resistance is the gap to the left at 733.
Both the corn and soybean markets are on a mission to mark higher prices as defined by last week's trade.
I believe Crude oil and Heating Oil have marked solid bottoms and are starting uptrends also.
401k's continue to look better. Friday's strong close in the DOW and S&P finished a strong up weekly bar. This trend is also a strong up - with 3 out of the last 4 weeks big ups and 1 small up.
After a couple of months of correcting, it appears most financial instruments are sweeping up together in a "risk on" environment.
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