FOR CORN, SOYBEANS & WHEAT

Who is this buy signal for?

This is for anyone who followed our several sell signals in corn, soybeans, or wheat this year. Or if you simply sold higher than we are today.

You can now re-own any of these for substantially cheaper than where we sold.

This is our first buy signal since March 4th before the April rally.

I have been patiently waiting for our next one.

If you want to talk specifics or would like to open a hedge account with us please give us a call or text anytime.

Jeremey: (605)295-3100

I have no idea if this is truly our harvest low. It very well might not be. As there isn’t a major fundamental reason to rally yet.

But I think we could be due for a bounce based on the charts and I see these as areas of value long term.

Why are we alerting this?

We hit downside targets and are sitting at support for nearly everything during a time of year where we can typically start to find some lows soon.

Let’s go over every chart.

First for corn.

Dec Corn 🌽

Our last corn sell signals were Feb 18th and April 10th. We are now well below those levels.

There are a few reasons why corn “could” bounce here.

I am not calling for a face melting rally. I just think this is a good spot to look to re-own. Especially in a market where a +185 yield seems pretty priced in at this point.

Reason #1

$3.95 was the 100% fib extension from the post 4th of July weekend sell off.

We nearly tapped it before rallying and posting a potentially bullish hammer.

Reason #2

Corn is the most oversold since March.

The RSI is essentially dead. Meaning we are very oversold.

The stochastics are also bottomed out and started to flip bullish (as the blue crossed above the orange)

This has led to several mini rallies.

Reason #3

Our absolute low last year was $3.85 with a carryout of +2 billion.

The USDA report is going to raise us from the current 1.67 billion carryout next week, but it will be hard to reach 2 billion.

Regardless, last year we only spent 30 days below $4.00 even with the more bearish balance sheet.

Nov Beans 🌱

I talked for weeks about how if we failed $10.00 our next stop would be $9.80

We finally hit that downside objective.

Why $9.80?

It is the trendline support from December and April.

It is also exactly the 1 to 1 move lower from the post 4th of July weekend sell off. (the 100% fib extension). Meaning this sell off equals the same size as that one.