AUDIO COMMENTARY

Markets waiting for January USDA report. It will set the stages where we go
Indicators suggest corn is losing steam & we could be close to local top (chart below)*
Stochastics topped out in corn (chart below)*
Trump will have a big impact going forward
Corn is tight globally, but we could get extra corn acres next year
At levels in corn where you should reward a 6-month high if you haven’t and need to move something the next couple months
If Trump ruins Mexico business would be a risk
Get a floor in corn or make a sale if you need to move corn before spring/summer
Different marketing routes in corn
SA weather still big soybean factor
A lot of bearish factors could already be built into beans. It is called a futures market
Watch the inverses & spreads
Use basis contracts in inverted markets
Wheat needs business if it wants to go higher
Bullish falling wedge in wheat? (chart below)*

Listen to today’s audio below

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CHARTS

March Corn 🌽

My next target is still $4.67 but I think there is a very high chance we see a short term correction here soon.

(Look at the next chart and the indicators to see why)

We could still push a little higher before correcting or it could start now. Anyone’s guess. But it will likely come at some point.

As for where we could bounce, bare minimum we probably see at least $4.50 and a back test of this ascending triangle. That “could” be as low as we go.

But there is a chance we could go as low as $4.43 and bounce anywhere in that golden zone between $4.50 and $4.43 (23.6% to 61.8% retracments of the $4.36 to $4.55 rally)

My bias remains higher unless we break below that trendline support (blue line)

The indicators are the biggest reason I think we get another local top soon.

The stochastics are once again very very close to topping out. (When the blue line crosses below the orange and is over extended)

They have accurately predicted nearly every local top.

The other reason is the RSI.

It is showing small signs of possible bearish divergence.

This just signals that corn is losing momentum.

This happens when prices make a higher high, but the RSI does not.

(The RSI is the relative strength indicator. It indicates how overbought or oversold something is)

Jan Beans 🌱

Still trying to break that May downtrend.

IF we do that, it will give bull some hope and be a good sign.

If we fail to do so, there is a good chance that this relief bounce was a simple back test before we head lower.

The risk still remains lower and we are still nearly +40 cents off the lows.

The downside possible risk is still another -$1.00 lower. Obviously doesn’t have to happen and I hope it does not happen. But that is the implied move lower and your risk.

If we break above $10.14 that would be the first good sign to consider the bottom being in.