Marty Hibbs suggests we could see a stall in corn prices before the market moves higher.
The Grain Farmers of Ontario analyst calls this a pivotal short term point in the charts.
He has both the short and medium term indicators positive with a weak buy signal on the long term trend.
This week's GFO market commentary reports soybeans are in the middle of a move that could go in either direction.
Short and medium term indicators remain bullish, but the long term soybean trend has still not yet confirmed a reversal.
And Hibbs says the continuation of a strong move by wheat will depend a lot on the corn and soybean activity.
His daily and weekly chart indicators have now turned bullish or wheat, but the long term trend is still down.
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Grain Farmers of Ontario Weekly Market Commentary: (Marty Hibbs)
CORN
Corn has performed very well over the past six weeks and we have reached a pivotal short term point on our charts. The July contract shows a protracted target of $4.30 has been reached which could suggest a rest and a possible correction. However, our weekly charts have not been satisfied, and this means we could have more upside in the coming days and a test of the $4.40 highs made back in the summer of 2015. If we manage a close above $4.40, the next target would be a run towards the $4.70 - $4.80 level likely within the next month. Both short and medium indicators are still positive, and this week our long term trend is getting a weak buy signal. This suggests we are at a critical point and another possible reason why we may see a stall in prices before we move higher. Support levels on the July contract are at $3.85 - $4 based on Chicago July futures.
SOYBEANS
Soybeans had a positive week again and we are now in the middle of a move that can go in either direction. According to our charts, we have reached our target of $11.40 but did not hold above there after the initial close on June 3. The chart also closed lower the following day with a hook reversal. Although the hook reversal is not a reliable indicator, it does suggest caution should be used in regards to the long side of the market. The past couple of trading sessions have formed a flag which extends to our $12 target area. In other words, if we manage to stay above $11.25 on the July contract before the next commentary, there is a good chance we will see our $12 target in the coming week but a close below the $11.25 level could prompt a selloff back below $11. Support is now seen between $10.80 and $11, while overhead resistance remains at $11.90 - $12.10 with our next upside target close to the $12 area on July. The weekly charts show potential for a shot at $13. If this market continues to perform as it has in the past month. Short and medium term indicators remain bullish, but the long term trend has not yet confirmed a trend reversal.
WHEAT
Wheat finally hit a home run the week of June 6 with a better than 30 cent move and flashed our first red signal on the weekly charts. Before we get too carried away, I feel the continuation of this move depends a lot on the corn and bean activity. All three of the grains are now hitting stiff resistance and that includes wheat which is running into a four-year-old down-trend line that cuts across the $5.15 - $5.25 levels on the July contract. Wheat has initial support at the $4.60 level on July with major support still at the $4.40 - $4.50 levels. The daily and weekly indicators have now turned bullish but the long term trend for the time being is still down.
