GRAINS GET HEALTHY CORRECTION. GETTING READY TO PROTECT DOWNSIDE

Written By Sebastian Frost

AUDIO COMMENTARY

  • Grains run into some resistance

  • Not horrible closes, well off the lows

  • Looks like healthy correction today

  • Charts below*

  • Exports have been solid

  • Charts still look great

  • Most see top end of yield coming off

  • Brazil looks dry for a few weeks

  • Close to some wheat sales

  • Will be looking at downside protection soon

  • Downside protection especially good idea if you have to sell off the combine

  • Finger on the trigger for floors before USDA

  • Still going to be a lot of supply hitting the market

  • Charts look best in months, trends changing

  • Could see pressure at harvest

  • Window for those that need to make sales here are next 3-6 weeks

  • I do still think we can go higher from here

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CHARTS

Dec Corn 🌽

Just like I mentioned yesterday, we are seeing some resistance at this long term downtrend line.

Once we break above this, we do have that long term support line turned to resistance that will be another very important level to clear. (pink line)

After that our next stop is $4.23. Which is the level I want to see the very confidently call the low.

But looking like we can go higher from here.

Just like when we get a green day in a downtrend, one day is not a trend. Corrections are healthy in an uptrend.

Ideally, I want to see us hold $4.03. If we broke below that I’d get a tad nervous about us going down near the lows.

Nov Beans 🌱

Beans higher past 8/9 days.

We rallied well off our lows, finding resistance right at those highs from two days ago.

We are above our early August lows, great sign.

We have some pretty good resistance between here and $10.31 (our mid July lows) so just like corn I wouldn’t be too surprised to see us run into some resistance here and take a break.

We have now formed a short term uptrend. Very solid chart.

Still want to see us close above $10.42 to call the low. But looking very good so far, and looking like we can go higher.

Ideally, I want to see us hold $10.00.

Dec Chicago Wheat 🌾

We found resistance right at that key $5.80 level I had been mentioning for weeks.

Still have targets of $6.12 and then $6.40 once we break out of this green box.

But I do still need us to break out of this green box to be confident we printed our lows.

Dec KC Wheat 🌾

First target is $6.16

Second target is $6.50 area.

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Sebastian Frost
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