7 min read

Grains update 6/1/22

Grains update 6/1/22
Photo by Xiaolong Jiang / Unsplash

This is a quick recap of what was sent out last Friday

July Beans last update,

With the big move up from 38.2% and new highs, we can use the 4/4/22 low to retrace back to, because it is the extreme low since the previous high. You can also use the most direct low as well on 5/9/22, but you have to keep in mind that it is the extreme 38.2% that needs to be taken out to change the short term trend for now. Using 4/4/22, 38.2% is 1674.00 and this is now the short term swing point. If you use the 5/9/22 low, 38.2% is 1683.00, this is also the major Gann square.

Tuesday's low was 1673.75, the bounce from it has been 30 cents so far and today's close was above the 1683.25 major Gann square.

Soybean Meal

With today's close above 429.00 the next target becomes 61.8% at 450.00, however it needs the second close above it to confirm the violation of that level, it also hit the 434.40 major Gann square and with a close Monday back below 429.00 you can look for a run at the lows, or at least down to the previous major Gann square at 411.00.

There was no second close above 429.00 and the break from Tuesday's high took it right to the 411.00 major Gann square.

Soybean Oil

With a close below 78.67 that is also below the 76.99 major Gann square, look for the Intermediate swing point at ...

The break below 78.67 hit the 76.99 major Gann square and closed higher for the day.

July Corn

It completed the first part of the rule by going 78.6% the other way and the jury is still out about it being the end of the bull run. With it holding above 23.6% of the last leg up at 752.00 this is a positive sign, however we can now watch 38.2% back up at 781.50, if this gets taken out everything looks very good again and you can look for the 815.75 major Gann square again. Failing to get above 781.50 on a closing basis is a negative sign and it can go for the combination area of 720.00 to 716.00,

Friday's high was 780.50 and the break from there took it to 720.50 today.

December Corn

Even falling just shy of the 769.50 long term target, the Dec. is in better shape then the July. The break from 766.25 fell well short of 23.6% of the last leg up at 693.00, this was also a major Gann square and that is a strong sign, but like the July we can now watch 38.2% of the break to see if the break is over. This is 729.50, it is also a major Gann square and becomes our short term swing point, below it look for 693.00 and back above it, look for the 769.50 major Gann square.

Monday;s high was 729.75 and the break from there has taken it to and through 693.00

July Wheat

The break from the 1244.50 major Gann square has taken it below the 1140.25 major Gann square (never closed below) and just above the Intermediate swing point of 1103.00, this is a very good sign and it should go for the 1244.50 major Gann square again, this is now 78.6% back to the high as well. Like the Corn, it has had a big enough setback back to start to watch 38.2% back up to see if this break is over. This is 1178.00 and the short term swing point, below it look for 1103.00

It never got up to 1178.00 and it has gone through the 1103.00 Intermediate swing point.

December Wheat

By holding 1147.50 on a closing basis and now closing above 1165.25 major Gann square we are looking for a quick rally back to the highs, however they first have to get through 38.2% of the current break at 1187.00, this is the short term swing point. Above it, look for the 1269.50 major Gann square again and below it, look for 1105.50 this is 23.6% back to the contract low and the Intermediate swing point.

Friday's high was 1185.50  and it has now taken out the Intermediate swing point of 1105.50

What to look for from here will be covered in the Premium Members area

This post is for paying subscribers only