There have been daily-scale compressions in corn and wheat over the last couple of days and corn has now pushed up. This has probably started a new uptrend, because of that new signal and because of a prior one – there was a weekly-scale bottom extension in mid-August that caught a low point three weeks before the actual low and this signal is still ‘in date’. Corn first:
We already have a long position in Corn that we also advised readers to take in the August 15th edition, so we shall just stay long – this will extend the life of that trade. If you have not already bought, you can do so now.
Wheat is more difficult. As with other grains, there is plenty of it around, thanks to rising crop yields (mostly due to increased carbon dioxide in the air – thanks, fossil fuels!) and there is no reason to panic about weather damage to upcoming harvests yet. Wheat made a daily scale bottom extension at the lows in late August and has made some daily-scale compressions since then, after which nothing much happened. We don’t see a reason to do anything here except maybe to buy if it starts to move up. It would need to trade through the highs of those other recent compressions (i.e. above 420) to justify such a trade, so we will just watch and advise further. If you like a ‘punt’, buy now but we will not (yet).
Soya beans compressed at a weekly scale last week. They may already be moving up from this new compression but it is too early in the week to tell. If we see a shorter-term reason to get involved we will notify this immediately:
All signals courtesy of software supplied by our friends at Parallax Financial Research www.pfr.com
