Corn has a gap in prices this week. Technically that should either be an exhaustion gap or a measuring gap. An exhaustion gap means just what you’d expect: the bulls are near the end of their ability to take prices higher. A measuring gap would mean that the gap is about half way between the beginning of the trend and the end.
Translating that, if we are looking at an exhaustion gap, think of a fellow walking up and down holding a sign that says, "The End Is Near A measuring gap implies prices should rise, without a major down swing, to the vicinity of 750 or 800. We might hope that the Commitment of Traders reports would help us here, but they don’t. Funds got a little longer, commercials a little shorter, and no one has a crystal ball.
Beans have had two good weeks. Were those two weeks too good? Funds got a little longer, commercials a little shorter, just like corn.
This past week for beans and corn really doesn’t read clearly (& sometimes price action reads "clearly" but is, in the end, clearly wrong). This week could turn out to be bulls taking a breather or it could turn out to be folks cashing in their chips. Or, most probably, it is just a matter of "wait and see" for all the players.
Wheat is the unloved step child this week, as it has been for several weeks. The price action continues to look as if any good news will send prices tumbling. The funds are net short, a bit shorter this week than last, and the commercials have the other side of the trades.
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