Grains have produced some new signals in the last few sessions. The strongest of the bunch has been wheat, which has made daily-scale top extensions. Soya beans, meal and oil have all made compressions, which may be breaking downward today (bean oil already did so before yesterday), while corn is the laggard, making no signal at all.
We don’t like to anticipate the break of a compression, as it is all too easy to sell a weak market in the morning only to see it rally in the afternoon, but this picture seems clearer than many and it looks bearish. We would sell the grains here and the best choice seems to be one or more of the soya complex. Of these, the weakest remains soya oil (as usual) so that is our preferred candidate. Even though corn has not produced a signal, that can be added to the list.
