Someone Woke Up to Grain Fundamentals

Interesting day here in Chicago. Gold moves to a new all time high at 1,183.20.. Moving towards its next milestone at 1,200. Silver is also higher, but hasn’t approached 19.00 seriously yet. Silver has been the laggard all the way in this metal move.
In the grains, someone finally woke up to the fundamentals. Corn and Wheat are sharply higher, while the Soybeans, the recent market darling, took it on the chin for a 20 cent break. I was checking the charts and the next good support in SF is 1020 area. A nice Fibonacci retracement off of the larger move. Pull it up on your charting software and you’ll see it. I think if we can break down in to the high 20’s today, we’ll definitely see that print, if only because the markets are thin today and the bears seem to have sunk their teeth into any remaining bean bulls.

All of the wet weather and the delay in harvest has finally impacted the corn and wheat. Corn is up 9 cents at 385, after posting a low today at 377. Wheat is up 8 cents at 546, after a low today at 534.
Look for this spread to keep widening, at least for today, selling beans against the corn and wheat buying.

In the stock indexes, no surprise. We continue to drift higher on bad economic news. At some point maybe we will have that correction everyone is looking for. Most likely after you get bullish and buy some 15000 Dow calls, lol.
In any event, DJZ posted a day session high so far at 10469, 17ticks below the old high at 10486. I would be surprised not to see a 10500 print today, just to paint the tape. Ditto in the SPZ, look for a move back above the 1112 level, perhaps to the 1115 level. So far today the low in SPZ is 1102 and the high is at 1111, for an 8 handle range. DJZ has seen a range of 70pts with a low at 10398 and a high at 10469. A typical 100 point range brings us up to that 10500 level.

Happy Thanks Giving

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