It’s always prudent for traders to examine longer-term price charts, in order to obtain an important bigger-picture price perspective on where prices have been and where they may be going.
Markets’ chart price history shows that when trending, prices tend to gravitate toward recent historical highs or lows.
The weekly continuation chart for nearby US corn futures shows prices in May popped sharply higher and hit a five-year high of $4.64 1/4.
That is now the next major resistance level on the weekly chart, and if it’s cleared on the upside, look for a quick challenge of major psychological resistance at $5.00.
On the downside, there is some strong longer-term technical support at the $4.10 level, basis nearby corn futures.
Below that lies major psychological support at $4.00 and then more longer-term chart support at the $3.85 area.
Presently, the longer-term charts favor the corn market bulls.
For US soybeans, the weekly chart argues that the rebound from the 10-year low of $7.80 1/2 scored in May is so far just a corrective bounce in a longer-term bear market.
Nearby soybean futures would have to push above this year’s high of $9.31 1/4 to give the bean bulls some fresh longer-term technical strength to then suggest a challenge of major psychological resistance at $10.00 a bushel.
On the downside from present price levels of around $8.85, longer-term technical support is located at $8.50 and then at $8.25. The soybean bears are presently keeping their longer-term technical advantage on the charts.
The soft red winter wheat futures market sees its longer-term technical posture neutral to slightly bullish.
In May, nearby soft red winter wheat futures hit a nine-month high of $5.58 and have since backed off.
That price level is now strong overhead resistance as seen on the weekly continuation chart for
If $5.58 is cleared on the upside, the door would be opened to a rapid move to psychological resistance at the $6.00 level.
Just below present soft red winter wheat futures prices lies major psychological support at $5.00, which if breached would see traders then challenging longer-term technical support at $4.75 and then at $4.50.