USDA RECAP: POOR REPORT, GREAT REACTION

Written By Sebastian Frost

AUDIO COMMENTARY

  • We had a negative report but traded higher

  • SA numbers disappointing. Will CONAB surprise next week?

  • World numbers continue to trend lower

  • The funds still heavily short. Report didn’t give reason to keep selling

  • The charts are starting to look very positive

  • Do not be chasing this rally. Courage calls quick

  • Who should not be re-owning

  • How I see this year shaking out

  • Taking advantage of this 3-4 week rally we could see

  • Charts & report numbers below*

Listen to today’s audio below

Charts

Corn Charts 🌽

This chart is starting to look great.

Second day in a row over the 20-day MA.

Highest weekly gain in 5 months.

Flirting with a breakout from that trendline.

First upside target is $4.62, our 23.6% retracement.


Soybean Charts 🌱

This chart also looks great.

First close above the 20-day MA since December. Smashing through it.

Flirting with that downward trendline from November.

First upside target is $11.98 and $12.40 1/2. Our 23.6% and 38.2% retracement levels.


Chicago Chart 🌾

Almost made a key reversal.

Like we said yesterday,wheat is famous for bear traps and bull traps. I don’t want to be aggressively short wheat with the other grain charts looking positive.


KC Chart 🌾

The same thinking goes for KC as Chicago.

Keep an eye on that trend line. We have not been above it since August.


USDA Numbers

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Sebastian Frost
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CORN TECHNICALS TURNING BULLISH. PREPARING FOR USDA REPORT