Just when the market bears were lulled to sleep, boom, the market has another limit up day in corn today (Wednesday) that pumps the market right back up near old highs.
Grain prices exploded to new highs in corn and soybeans after, last Friday's blockbuster USDA report, where corn yields were dropped record amounts during an October report of a non-drought year.
Last week we talked about how markets were at a pivot point for corn and soybean markets, as both rallied sharply to new highs, yet there were some cracks in the bull market with some moves lower in corn (while soybeans continued to rally to new highs). Today, we have a market that so far this week has been variable at best, first rallying to new highs on Monday morning, only to close lower and add to those losses Tuesday. Wednesday's overnight trade was also sharply lower, making the bull market in jeopardy as we were on the verge of losing the upside momentum that the market has held si
Corn prices continue to rise the past week, pushing up a little faster recently as prices have pushed near $5 already, after topping $4.50 just last week.
Last week, we talked about how the corn market has been the leader of the grains, and finally last week it rallied past its recent 18 month range below $4.50, turning trend to higher and keeping the bulls alive with anticipation for how high the corn market can go.
Wheat market has dropped enough from recent highs to have formed a potential
top in the wheat market, a factor that may have major implications for the corn
and soybean markets. Wheat prices that have dropped $1.50 from the highs last
Thursday night indicate a potential 'blow off top' has been formed in wheat, as
prices have dropped more than 7% from recent highs. That means a potential top
has probably been formed in wheat for now, with prices rolling much higher than
Prices rally on drought.
Wheat leads the CME Group floor.
Grains may have reached peak.