That was quite the sell off. The market was due for a drop off, but the magnitude to which the new crop sold was surprising. While targets were met on the bean side, corn never could get any kind of pop to it.
I think the bottom of this daily cycle is in, and we should rally through the end of the month. Corn is certainly showing signs of buyers stepping in. These hammer doji's (which are circled) on the corn chart indicate buyers stepping in. This is Dec Corn.
Because price fell below the January 7 low, we have a failed daily cycle on new crop corn.....an overall bearish sign. Any bounce that occurs here should be met with selling.
Old crop corn, however, did not fall below its January 7 low, and should have a stronger rally. The higher low is bullish. Again, price is putting in a hammer today as of this writing.
Old crop soybeans likewise have room for a pretty nice rally.
November soybeans hit the $13.50 sell target and immediately retreated southward nearly triggering a buy signal on the CCI. Prices now are at a support level which was first established back in April of 2011, and is still significant today. I would expect this level to hold through the end of the month.
Wheat sales should not be made at this time, as we are very close now to floors set by crop insurance guarantees.
Now that a bottom appears to have been made, I have some ideas on new targets for future sales. I will post those ideas over the weekend on the opportunities page.