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Agricultural Commodities

Wheat Futures Test Significant Support Wheat Technicals: Wheat futures came within a stone's throw of 4-star support overnight, we've had that labeled as 1027 1/4-1034 1/4, the low was 1036 1/2. If you're Bullish (we aren't) that is a good spot to consider buying as the risk is fairly well defined. A break and close below that pocket could open the door for a break back below $10.00 and below, with the next significant support coming in closer to 975. Bias: Neutral Previous Session Bias: Neutral Resistance: 1142 ¾-1150***, 1200-1205 ¼** Pivot: 1095-1102 Support: 1027 ¼-1034 ¼****, 982**, 967 1/4** Futures trading involves substantial risk of loss and may not be suitable for all investors. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.
CBOT:ZWN2022
by OliverSloup_BlueLine
2
Soybeans Struggle to Hold Support Soybeans Technicals: July soybean futures broke and close below trendline support yesterday which opened the door for additional weakness in the overnight session. Futures have recovered some and trading near unchanged. Previous support is now resistance, we see that first hurdle coming in near 1710. On the support side of things, the 50-day moving average and low end of the range come in near 1675. If that support gives way, we could see the selling accelerate. Bias: Neutral/Bearish Previous Session Bias: Neutral/Bearish Resistance: 1720-1728***, 1757 ½-1760**, 1775 ½-1784** Pivot: 1710 Support: 1690**, 1673-1679 ½*** Futures trading involves substantial risk of loss and may not be suitable for all investors. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.
CBOT:ZSN2022
by OliverSloup_BlueLine
Daily Soybean Market Update (6.14.22)Soybeans Fundamentals: Yesterday's weekly crop progress report showed the U.S. soybean crop is 88% planted, 70% emerged, and a Good/Excellent rating of 70%. There were no major surprises here. Yesterday's weekly export inspections report came in at 605,129 metric tons, well above the 365,455 last week and 141,320 we saw in the same week last year. Technicals: Soybean futures broke through support from 1720-1728, this will now act as resistance. A close back above here opens the door for a potential run back at the contract highs and above. There is some trendline support from May 17th-June 7th that is holding well over the past 24 hours. A break and close below here could spark a drop back below $17.00. Bias: Neutral/Bearish Previous Session Bias: Neutral/Bearish Resistance: 1757 ½-1760**, 1775 ½-1784** Pivot: 1720-1728 Support: 1690**, 1673-1679 ½*** Futures trading involves substantial risk of loss and may not be suitable for all investors. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.
CBOT:ZSN2022
by OliverSloup_BlueLine
Daily Wheat Market Update (6.14.22)Wheat Technicals (July): More of the same for wheat, as we continue to trade in a range, albeit a wide range. Wheat futures continue to chop around from about 1030 on the low end and 1100 on the high end. A breakout or breakdown from these levels could pop or drop the market 50 cents relatively quickly. Our bias is Neutral at the moment, but we would be looking to be lean bearish at higher levels. When we say higher levels, we are talking about a retracement of the May 31st breakdown point near 1150. Bias: Neutral Previous Session Bias: Neutral Resistance: 1142 ¾-1150***, 1200-1205 ¼** Pivot: 1095-1102 Support: 1027 ¼-1034 ¼**** Futures trading involves substantial risk of loss and may not be suitable for all investors. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.
CBOT:ZWN2022
by OliverSloup_BlueLine
Event-Driven Strategy on Binary OutcomesCBOT:ZS1! Last week, I laid the groundwork for a new idea on event-driven strategy. Event-Driven Strategy Focusing on Global Crisis. Three-factor Commodities Futures Pricing Model and Game Theory Matrix were introduced, illustrated with my own experience trading COMEX Gold Futures (GC) during the US-China trade conflict in 2019. My idea was featured on Editors’ Picks, generating over 16,000 views and nearly 800 likes. Today, I would expand my idea to traders who want to construct their own event-driven strategy, in a 3-step approach. Firstly, to qualify as a crisis, it needs to have the magnitude to shock the global market. Below is a few examples of global crises in the past five years: • US-China Trade Conflict (2018): The two countries account for 42% of global GDP and have a combined population of 1.7 billion people, 22% of the world total. New tariffs imposed on thousands of goods with multi-year cumulative amount reaching $2 trillion. • African Swine Fever (2018): It reportedly wiped out 60% of the pigs in China. Supply shortage from the No. 1 pork producer sent pork price up 300% in China. Global markets from the U.S. to Europe also felt the pain, as meat prices went up across the board, affecting pork, beef, lamb, and poultry. • Brexit (2019): The withdrawal of Great Britain from the European Union resulted in a loss of 20% of GDP and 13% of population in the world’s third largest economic block. The impact on Britain itself is less than certain, as it would trade less with EU members, and more with countries outside of Europe. • COVID (2019): The Coronavirus outbreak has turned into a global pandemic, and dramatically changed the world and our lives as we know it. • Trump defeated in the U.S. presidential election (2020): It put a stop to the “America First” policies. In just four years, U.S. political landscape has once again swung widely. • Russia-Ukraine Conflict (2022): First major military conflict in Europe since WW2. In addition to the hundreds of thousands of casualty and millions of refugees, the ongoing conflict disrupted the global supply of energy and agricultural products, sending US inflation to a 40-year high. • Lockdowns in China (2022): Dozens of Chinese cities have been under some form of lockdowns in recent months, affecting a quarter of its population. It also created huge bottleneck in global supply chain, sending rippling effects around the world. Secondly, analyze the impact of a crisis and attempt to define it in binary outcomes. These outcomes must be mutually exclusive and collectively exhaustive (MECE). If you are unclear of the outcomes, or there are too many of them, it would be difficult to construct a trading strategy around the crisis. Riding on the above examples of crises events, we will have their binary outcomes as follows: • US-China Trade Conflict: Fight or Talk (alternatively, Tariff or No Tariff) • African Swine Fever: Contained or Spread Out (Not Contained) • Brexit: Approved or Not Approved • US Election: Democrats Win or Republicans Win • Ukraine situation: Putin Wins or Putin Loses (Peace deal is considered a Loss for Russia) • China’s Zero-Covid Policy: Shanghai Lockdown or End of Lockdown Thirdly, search and identify financial instruments that are most affected by the crisis. How do you know which is the right one amid a wide range of financial instruments? A quick test is to observe whether its price change correlates to the binary outcomes of the crisis. In a classical supply and demand diagram, fundamental drivers move price up or down along the supply and demand lines in a continuous fashion. A crisis event shifts the lines to the left or to the right, pushing sudden price bumps as the event hits the news headlines. Deep dive into the trade conflicts between China and the U.S., we can deploy the event-driven strategy on a commodity directly impacted by tariff. Interestingly, it was not a Chinese commodity tallied by Mr. Trump, but a U.S. commodity being taxed by China – Soybeans produced by U.S. farmers. On April 2nd, 2018, the Trump administration announced that it would impose 25% tariffs on about 1,300 industrial, technology, transportation, and medical products made in China. In less than a day, China responded by imposing a 25% tariff on 106 goods in 14 categories, including soybeans, automobiles, and chemicals originating in the U.S. Following China’s announcement, CBOT Soybeans Futures (ZS) dropped 2.2% and touched a low of $9.83/bushel. In my view, the initial price down was an understatement. I believed that CBOT Soybeans could go a lot lower with the tariff making the U.S. grains less competitive than those from South America. Over the next week, I put in Short ZS Futures positions, mainly on back-month contracts. Here are the logics behind my trades. As the world’s largest consumer and importer of Soybeans, China imports 85% of its soybeans for domestic consumption to meet the huge appetite in cooking (soybean oil) and animal feeds (soybean meal). United States is the largest producer and exporter of Soybeans, with 68% of its export going to China. Tariff takes time to impact the market fully. At first, Chinese importers expedited purchase of US soybeans ahead of the tariff deadline. They also increased buying from Brazil and Argentina. Eventually, when the cheap grains were exhausted and inventory was depleted, they would be forced to buy from American farmers again. The higher price with tariff would encourage use of alternative ingredients and reduce the overall Chinese demand on soybeans. This prediction has been proven to be on the right track, as CBOT Soybean Futures continued to decline in the next three months until it hit $8.00/bushel, down 20% from levels before the tariff. Let’s rework the Soybean trade using our 3-step approach. Firstly, Does it have the magnitude to shock the global market? Yes. 40 million metric tons of soybeans, or $15 billion a year, would be taxed by China. It had huge negative impact on U.S. farm incomes. Secondly, could we define the Soybean tariff as an event with binary outcomes? Yes, it is either “Tariff On” or “Tariff Off”. If the tension escalated, tariff would stick and become a permanent part of soybean cost. On the other hand, if US and China started a trade talk, soybean tariff could be removed later. While the tariff impact on nearby futures is fixed, it is not so on back-month futures prices. Thirdly, is Soybean Futures the right instrument to use? Let’s apply our three-factor commodities pricing model on soybean, as follows: Soybean Futures Price = Soybean Cash Price + Market Sentiment + Probability of Tariff In a “Tariff On” scenario, the probability of tariff increases to 100%. While production cost in the U.S. is not affected, Chinese exporters must pay 25% more to buy. The reduced demand for U.S. soybean has the net impact of pushing futures price down. Therefore, the sign of Tariff Premium should be negative in the case of soybean futures. In a “Tariff Off” scenario, trade talk could reduce the probability from 100% to 25%, for example. A signal of Chinese demand recovery has the net impact of raising futures price up. Typically, about 1/3 of US soybean, or 40 out of 120 million metric tons of the grain, is exported to China every year. This sheer size made tariff a dominant factor driving soybean price, outweighing fundamental factors such as planted acreage, weather, and yield. This concludes the use of US-China Trade Conflict as a case study for applying the event-driven strategy. My next writings would explore new strategies on more recent event shocks such as the lockdowns in China and the Ukraine situation. Meanwhile, please tell me what you think, either on TV or by email. Happy Trading. Disclaimers *Trade ideas cited above are for illustration only, as an integral part of a case study to demonstrate the fundamental concepts in risk management under the market scenarios being discussed. They shall not be construed as investment recommendations or advice. Nor are they used to promote any specific products, or services.
Editors' picks
CBOT:ZS1!Long
by JimHuangChicago
8
Wheat Futures, the Modern Day Yo-YoWheat Commitments of Traders Update: Friday’s CoT report showed Managed Money were net sellers of 2,905 futures/options contracts, through June 7th. This shrinks their net long position to 13,774. Broken down, that is 82,385 longs VS 68,611 shorts. Technicals: Wheat futures continue to chop around in a wide range, from about 1030 on the low end and 1100 on the high end. A breakout or breakdown from these levels could pop or drop the market 50 cents relatively quickly. Our bias is Neutral at the moment, but we would be looking to be lean bearish at higher levels. When we say higher levels, we are talking about a retracement of the May 31st breakdown point near 1150. Bias: Neutral Previous Session Bias: Neutral Resistance: 1142 ¾-1150***, 1200-1205 ¼** Pivot: 1095-1102 Support: 1027 ¼-1034 ¼**** Futures trading involves substantial risk of loss and may not be suitable for all investors. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.
CBOT:ZWN2022
by OliverSloup_BlueLine
Soybeans Under Pressure to Start the WeekFundamentals: Soybeans are under pressure to start the week, along with many other commodities and markets as last week's outside market turmoil has poured into this week's trade. This afternoon's Crop Progress report is expected to show the U.S. soybean crop near 90% planted. Good/Excellent conditions are expected to come in near 70%. Last year at this time the crop was rated 62% G/E. Commitments of Traders Update: Friday’s CoT report showed Managed Money were net sellers of 6,505 futures/options contracts, through June 7th. This shrinks their net long position to 153,654. Broken down, that is 168,458 longs VS 14,804 shorts. Technicals (July): July soybeans were weaker to round out the week, which gave back just a portion of the sharp rally that we saw on Thursday. 1750 is our pivot pocket, a close above or below here could set the tone for the next 25 cent move. On the resistance side, 1775-1784 is the objective for Bulls. A breakout above there puts the market back in uncharted territory which makes in extremely difficult to find high conviction resistance levels. $16.00 would be the next psychological barrier. On the support side of things, 1720-1728 is the pocket the Bulls want to defend. This pocket was previously resistance and will now act as support. If that gives way, it could spark long liquidation back below $17.00. Bias: Neutral/Bearish Previous Session Bias: Neutral Resistance: 1757 ½-1760**, 1775 ½-1784** Pivot: 1750 Support: 1720-1728***, 1690**, 1673-1679 ½*** Futures trading involves substantial risk of loss and may not be suitable for all investors. Trading advice is based on information taken from trade and statistical services and other sources Blue Line Futures, LLC believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades. All trading decisions will be made by the account holder. Past performance is not necessarily indicative of future results.
CBOT:ZSN2022
by OliverSloup_BlueLine
$SOYB / $ZS_F: Weekly and monthly trends are upSoybeans have been consolidating and shorts have been hitting the same level near the invasion day highs for 3 months give or take, today price broke out and confirmed a weekly trend signal. The monthly timeframe indicates beans can rally until October 2022, so, getting lower timeframes to turn bullish again presents us with a massive reward to risk long opportunity here. I bot July futures / $SOYB calls today, aiming to capture the move shown in the continuous chart here. If you want you can join the trade when beans futures open tonight, keep in mind you will need to roll the position to the next contract month 8 calendar days before the expiration date give or take (you'll see volume is high on that day), or, to make it simpler, buy the Nov 18 $31 strike $SOYB calls. If you buy futures, calculate risking a drop under last week's low, if you buy options, calculate risking 1-5% of your capital in call premium. Over time we might be able to bet on higher strikes as well, or trade around the position in shorter term timeframes (often good to delta hedge calls with 15m setups on the short side if you're good at scalping, then use proceeds to add to the call position for increased exposure without increasing risk). Best of luck! Cheers, Ivan Labrie.
CBOT:ZS1!Long
by IvanLabrie
1
WEAT ETV To Play The Future Price of WheatWEAT's price, an ETV which trades wheat futures, is positioned to keep increasing as the horrible war in Ukraine rages on. I accumulated this back at the $6.5 - $7 price level as a response to the decrease in fertilizer (thank you China for hoarding and mismanaging) and increases in crop disruption due to climate change related disasters. As you can see, it was chugging along nicely within the channel I drew back in Sept. I was expecting the continuation of nice returns as I've been playing the top and bottom of the channel. I had no idea that the #1 and #5 producers of wheat would go to war before spring planting and now we can expect the price of wheat and wheat futures to sky rocket. There is supply side destruction for at least one year that is being priced in right now but the decrease in fertilizer and climate disruption effecting the rest of the producers has not. Where the market hasn't yet priced something in, there is profit to be made. Wheat and thus WEAT's price has open skies once it breaks through the $12.65 level and the broader cup, of the cup and handle formation it has been forming for years, will be put in at $24.65, then down to put in the handle, reset and then put in a big impulsive wave up.
AMEX:WEATLong
by SloppySeconds
4
Soybean Technical Update (6.8.22)Soybeans (July) Technicals: July soybean futures were able to defend trendline support in the prior two sessions which helped spark a rally in yesterday’s trade. That rally has led to follow-through buying in the overnight/early morning trade with July futures making new contract highs. The market has been up here a few times in the past few weeks but failed to find more buyers. Time will tell if this time is different. With the market at new contract highs, the task of finding the next meaningful resistance point becomes more difficult. Going off the continuous chart you could use the February 24th high for the March contract, 1759 ¼ and the April 22nd high from the May contract, 1757 ½. Finding meaningful points above that is a game of pin the tail on the donkey. Bias: Neutral Previous Session Bias: Neutral Resistance: 1757 ½-1760** Pivot: 1750 Support: 1717-1720***, 1690**, 1673-1679 ½***
CBOT:ZS1!
by OliverSloup_BlueLine
Technical Update for July CornCorn (July) Technicals: July corn futures were able to chew through significant resistance during yesterday’s session, which has opened the door for an extension towards our next resistance pocket, 769-773. This pocket represents the lower high from the end of May, as well as the 50-day moving average. If the Bulls can keep the momentum going and chew through this resistance pocket, a retest of the psychologically significant $8.00 handle wouldn’t be out of the question. Bias: Neutral Previous Session Bias: Neutral/Bearish Resistance: 769-773 ½***, 789 ½-790 ½**, 800-803 ¾** Support: 747-753****, 729-733**, 716-720 ½****
CBOT:ZCN2022
by OliverSloup_BlueLine
Crude oil, Dow Jones, and Soybeans: Many things are currently driving the bullish Ag markets. Oil/energy are heavily weighted in providing this bullish enthusiasm. The supply and demand for Corn and beans will be directly and indirectly impacted by Oil/energy markets. Energy Markets have the potential to react hard and fast on diminishing economic data. A strong economy should keep Oil and Ag Markets elevated to potentially extremely high levels. A soft economy (using DJI as a gauge) moving into recessionary mode, will kill oil demand and take down Ag markets for some time as well (as it did in 08’). I don’t know for sure what to expect for our economy, sensitive and volatile ahead… 23’ Corn and Beans are in Pickle. Inputs are expected to rise considerably so naturally we want today’s Cash prices (or better) for a more expensive 23’ Crop. It’s hard to price something (23’ crop) that is $1-$3 below the current Cash Market. But when this drops, the markets won’t ask you for your costs of production before dropping… Don’t fall asleep on multiple crop years, especially if we see “Blow off Top” activity in Oil and old Crop Ag markets.
Editors' picks
NYMEX:CL1!
by mtb1980
4
Real economy beating expectations yet markets trading in red 🤔INVESTMENT CONTEXT President Vladimir Putin said that Russia was not blocking Ukrainian wheat from being exported, and that the grain could be dispatched via ports controlled either by Russia or Ukraine. Before the war, Russia and Ukraine accounted for ca. 29% of international annual wheat sales U.S. economy added 390,000 jobs in May, beating analyst expectations (325,000) and showing resilient real economy in the face of rampant inflation and higher interest rates Crude oil inventories in the U.S. fell to 414.7 million barrels in the wake of strong demand, yet limiting chances of further releases to cool domestic energy prices Goldman Sachs COO John Waldron followed JPMorgan's CEO Jamie Dimon saying “This is among if not the most complex, dynamic environment I’ve ever seen in my career". On a similar tone, in a leaked Tesla email, Elon Musk cited having a "super bad feeling" about the economy as the main reason for shedding 10% of the company's workforce PROFZERO'S TAKE When good news are met with S&P 500 dropping more than 1.50%, and Nasdaq doing even worse at 2.47% in the red, we know something is off. That's what happens when bears are in control, and policy makers are desperate to understand how far can they move with tightening before the backlash. A remarkably strong U.S. economy just added 390,000 jobs in May, beating analyst expectations and reassuring the Fed it could maintain the trajectory of 50bps rate hikes in July and August. ProfZero clearly welcomes Main Street's resilience and rising wages - yet, as anticipated in Step99 podcast, it cautions against the forward-looking effects of monetary policy vs. the actual state of the economy. As pointed out by The Economist, "A recession in America by 2024 looks likely" - today's strength of the real economy may at best soften its blow Citigroup CEO Jane Fraser sees "three R" whiplashing EU economy - rates, Russia and recession, this latter happening in Europe ahead of the U.S. because of "the energy side (...) really having an impact". ProfZero has made energy a key theme of this Parlay, with potentially more decisive effects on the real economy than monetary policy. With Brent testing again USD 120/boe and fading cushion inventories from the U.S., it is hard to imagine how the EU will cope with the next cold season without rationing output, hence slashing GDP growth. Regasification plants and last-generation nuclear are definitely tools of the future; but by then, are seaborne imports going to be enough? Equities are definitely off the lows witnessed in April and early May - perhaps Musk's "super bad feeling" and Mr. Dimon's "hurricane" are rather looming on the real economy? Not an inch less worrying... BTC once again confidently breaking up the mid-term triangle pattern and trying to regain 32k after trading below 30k on June 4-5 - and yet ProfZero's eyes are set on the lurking death cross on 200MA PROFONE'S TAKE After sharing about lithium and nickel, ProfOne completes the overview of rare minerals that are crucial for the production of batteries setting its eyes are on cobalt. Cobalt prices soared from USD 30k/ton in January to USD 52k in May - on top of the 2x surge in 2021 vs. 2020. According to the Cobalt Institute, in the next five years cobalt demand is expected to hit 320k/ton, up from 175k/ton in 2021. ProfOne argues that meeting such demand won’t be operatively easy. For once, cobalt is yet another highly concentrated resource: about 70% of world’s cobalt comes from the Democratic Republic of Congo, where production is dominated by Chinese companies and commodities trader Glencore (GLEN). Adding to it that world's second supplier of cobalt is Russia, the metals puzzle turns out to be a fairly intricate one
CME:BTC1!
by ProfZero
Corn (Central Banks can't print Food)View On Corn (6 June 2022) We are seeing some possible bottoming signs, and we shall see a lot higher price pretty soon. So, it is better to buy in slowly and accumulate them. Tip and Toe. Let's see DYODD, all the best and read the disclaimer too. Feel Free to "Follow", press "LIKE" "Comment". Thank You! Legal Risk Disclosure: Trading foreign exchange or CFD on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor.
FX:CORNFLong
by SonicDeejay
Corn: 2 possible scenariosAn attempt to show potential paths that corn could take. • Currently have an up-trending pitchfork (blue): If corn respects trend line support and makes another run up, the trajectory could warrant a move above $9.00 into mid July and into August. Sep Corn will have some work to do to chew through the large inverse but it can be done. The green bars illustrating the move is a ghost feed from this same time frame on 2012’s move higher. • The down-trending pitchfork (red) will make an attempt to it’s own median line at 6.11 and could theoretically make that move into last half of June (July contract). At this point we could se an attempt back up to compete with recent highs. So what to do. New crop (Dec22) will follow the course of front months, so use continuous chart to help make decisions on new crop. On a break above the upper level downtrend line on the red pitch fork (following the green ghost feed) start looking at selling physical, buying puts, selling option premiums (spreads…), etc On a move below the lower level up-trending blue pitchfork, look for support to re own or buy courage calls (against the red ghost feed). Keep targets on a recovery at retracement’s just below the high mark and be ready to lift out of calls or roll up calls in that area. Buy puts on the recovery to get 100% priced and protected. All of this is in theory and not necessarily a decisive game plan. Just wanted to share some thoughts...
CBOT:ZC1!
by mtb1980
1
Corn - Monthly continuous Last years high of 7.35 met the median line of the long term pitch fork and turned lower. This year we have met the median line again with a high of 8.24. It appears that the median line has strong resistance. The momentum indicators (RSI and Stochastics) are turning lower. The divergence in lower pivots this year on each indicator accompanied by higher highs in corn cautions of a potential change in trend. **Cautiously Bullish Corn, this chart is the reason to be cautious**
CBOT:ZC1!
by mtb1980