Wheat, Corn and Beans
Commentary on the Wheat, Corn and Soybeans.
WHEAT FUTURES
Readers of the Klarenbach Report might remember last March and June’s commentary on this Wheat Futures chart.
At that time, we recognized a potential ascending triangle forming which I used to calculate a measured move price target indicated by the green horizontal line.
That target was reached almost to the tick.
Since then, the price has corrected and is testing the blue trendline from the beginning of the June 2020 move.
I will be watching to see if this trendline gets broken and if the price moves lower.
Quite often, areas of previous resistance act as support and we have previous supply in the 583 and 574 levels.
***Click on the chart to enlarge***
CORN FUTURES
Corn also broke the blue trendline from the beginning of April 2020.
Currently, buyers are stepping in at the .236 Fibonacci retracement level from the August move.
If the price breaks down further, I anticipate support at each fib level.
Notice, the fib levels on this move are at previous levels of significance.
I don’t know why this happens.
Perhaps, you know,
SOYBEAN FUTURES
Readers of the Klarenbach Report will also remember last year’s commentary on this chart as we were stalking the break of the yellow trendline.
I outlined a possible price action scenario with the blue dashed line.
It looks to me like Soybeans and Canola could be taking a break after that amazing runup in prices.