Corn, Wheat and Soybeans all marked corrective action on Friday. To these eyes, it seems like wheat lead the way down. The 9 o'clock to 10 - 1 hour trading volume bar in March Wheat near the low was at least double, at almost 20,000 contracts, that of any day since November 11th - you'll see this highlighted on the 1 hour chart.
I had mentioned that the longs were bankrupted on the last low on December 20th. All the new and old leftover longs were forced out this time. Here's a look at the 9-10 AM volume:
March Corn backfilled to test last Monday's low in the 450 region - perfectly reasonable. Corn must have needed more energy to clear the 460 level. We still have the higher targets of 475, 493, and maybe 510. Here's the 1 hour March corn chart - note the primary up trend line (blue).
March Soybeans also had a larger corrective wave. See notes on chart. Notice the traders have already lined up in anticipation of Sunday night's open. This is how opening calls are estimated. However, this will all change before the open.
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