GRAINS CONTINUE RUN. WAYS TO PLAY THE MARKET. WHAT’S YOUR SITUATION?

Written By Sebastian Frost

AUDIO COMMENTARY

  • Canada & China canola pressure

  • Grains contribute to run from lows

  • Charts look very strong

  • ALL CHARTS BELOW AUDIO*

  • Could be approaching resistance

  • Less farmer selling

  • Some say bean count isn’t there

  • Next targets for grains

  • What to do with targets when we hit them

  • Big ag forces sales at the bottom

  • Do you think the government wants to pay you an insurance check?

  • Next weeks USDA report will be big factor

  • Ways to play the market here with floors etc

  • Getting ready for floors on stuff have to move

  • More upside than downside here still

  • What is your situation?

  • Capturing the carry

Listen to today’s audio below

Want to talk? (605)295-3100

CHARTS

Dec Corn 🌽

We took out $4.03

We took out $4.09

Next stop might be $4.23

HOWEVER, just be aware that we are running into some important resistance levels here. So I would not be shocked to see pull back.

We have resistance at that May downtrend (teal line)

We have resistance at that pink line, which is our long term old support turned to new resistance.

If we can bust through that pink line and the $4.23-26 area (green box) I would be pretty confident saying we found ourselves a bottom.. although it does feel like we already might’ve found one.

So wouldn’t be surprised to see a pull back with the upcoming resistance. Some pretty big levels coming up for corn.

With first notice day out of the way, we are going to be seeing less farmer selling, and probably won’t see any until we get at least into those July highs of $4.23.

The funds have actually been buying corn the past few weeks, but it was met with farmer selling. Thats not there anymore.

Nov Beans 🌱

Beans higher past 7/8 days.

Charts looks great. We busted through that May downtrend for the very first time last week.

Highest close in a month.

Took out our July lows of $10.18

Could definitely run into resistance between here & $10.31 (blue line), but don’t have to. That was our mid-July lows.

Looking pretty great thus far. Ideally I want us to make our first higher high at $10.42 (orange line) before getting too overly confident that the bottom is in.

Dec Chicago Wheat 🌾

Wheat sitting right at that $5.80 level I had been pointing out for weeks if you had been reading my chart updates.

Last Friday I said if we broke that channel (yellow lines), the next stop was this $5.80 level.

Another push higher out of this green box and my next target is $6.12 (our 38% retracement from our May highs) (pink line).

My 2nd target is our 50% retracement at $6.40 (green line).

Dec KC Wheat 🌾

Same exact situation as Chicago.

I said if we break that channel, we could go test the recent highs.

Next target is the July highs of $6.16

2nd target is $6.50

Chart looks very strong today.

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(605) 295-3100

sfrost@dailymarketminute.com

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Sebastian Frost
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