The December24/March25 Corn spread has gained 10 cents since September 24th, and closed Friday at minus 9.5 cents. This is a big improvement for the bulls from when the low was minus 19.5 cents last September. This indicates that demand for this years crop just out of the ground is strong.
The March and December corn charts have formed a triangle bottom, with December having a flatter top due to it's strength. There is a good argument for March Corn prices to rally to the 5 dollar area fairly soon.
On the March chart, you can see the width of the triangle is 49 cents. If you measure 49 cents from the top of the triangle, it places price in the 495-500 region:
Here is the December 24/March 25 Corn spread chart:
It appears that Soybeans are carving out a bottom formation, as well. There is some argument as to what to name the formation - double or triple bottom, etc. I call it a triangle with a flat-ish bottom. The main point is that demand is taking over near the 973.50 low price - the fund bulls are defending this price area. The excess supply is absent near this price.
The width of the triangle is about 115 cents. Therefore, the target higher will be the breakout out of the top plus 115. This equals approximately 1203. You will see the pattern on the daily chart here:
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