Subject: Charts
CORN – Days before the December Corn contract expiration, March Corn came within striking distance of the contract low of 365’6 made during the month of September, prior to the September contract expiration. The downtrend from the fall high made during the month of October has worked its way down to just below 380’0 into mid-December which could be the first technical key to unlocking more upside potential. A breach of 384’6, the early December high, is required to turn the trend positive. Common retracement targets are in red, while one must also be aware of the 402’4 high the December Corn contract made during the month of October as a potential upside target on a continuous basis. Failure to break through 384’6 followed by a move below 371’2 would suggest a test of the 365’6 contract low and possibly new contract lows to follow.
SOYBEANS – After a large scale breakdown from the 970’0 high made during the month of October, the March Soybean contract retested fall’s lowest daily settlement price of 885’2 making a low in early December of 882’4 with another low daily settlement of 885’2. March Soybeans have already retraced 38% of the October-December decline in short order, and have found resistance at the downtrend line drawn from the October peak. A break above the downtrend would suggest an orderly test of the 50% & 62% retracement levels. After holding the fall low, a test of the fall high would not be out of line. Failure to break the downtrend would suggest another test of recent lows while a break and weekly close below 879’2 is required for a violation of the sideways pattern and a test of the 841’4 contract low made during the month of May.
WHEAT – July Kansas City Wheat, otherwise known as new crop HRW, has what an appears to be an ascending triangle pattern which tends to resolve itself to the upside. The months of October and November have both seen tests and failures of the 463’6 spring low, which held as support all summer until the August WASDE report sent values to new contract lows. A weekly close above the 466’0 high made during the month of November is required to suggest a “breakout” of the ascending triangle pattern which would then suggest sharp gains to follow. A test of the downtrend drawn from the series of three major highs made during the month of June would be the initial target while the measurement of the ascending triangle itself would suggest a test of values near 513’0. Another failure to break out to the upside might bring yet another test of the uptrend drawn from the September monthly low, but a break below 440’0 is required to negate the ascending triangle and warrant a test of the September low.
Brian Splitt
AgMarket.Net Branch Manager
Farm Division of John Stewart & Associates
2607 N Prindle Ave
Arlington Heights, IL 60004
815-665-0463 Desk
847-946-2080 Cell
@bjsplitt Twitter
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