- October 6, 2020
- Posted by: Daniele Prandelli
- Categories: Corn, Soybeans
The Grain Market is one of my favorites; I consider Corn, Soybeans, and Wheat wonderful Futures Contracts to trade. Sure, the best is the Soybeans Future Market, Gann used to call it the King.
We see a reaction of the prices during the last months: Soybeans price is at levels that we have not seen since 2018; Corn bounced at 300, but it remains around the same levels of the last 7 years; Wheat is also in a sideways pattern during the last years, with a resistance in area 580. Here below the chart for each Grain Market:
I heard a lot of “rumors” about “important” people calling for a strong imminent uptrend in grains; I do believe it is possible, but I would not have huge expectations! I heard people calling Soybeans at 3000 or Corn at 1500! I do not know if we will be able to see such high levels, but I definitely think we have nice levels to confirm the next potential uptrend.
- Soybeans price shows a breakout above the trend-line resistance of the last years, which is at least a signal that the down pressure may be over.
- Corn has a general resistance in area 400, with few breakouts above it during the last 7 years, usually lasting no more than 1 month (except for 2019, where Corn remained above 400 for almost 3 months). It means that area 400 can be significant to read the right trend of Corn.
- Wheat has a clear resistance in area 580, and a consolidation above it may be the signal for higher levels.
How did we work with Grains?
We did a great job with the King (Soybeans), a good job with Wheat, but we suffered a little with Corn, where we are not seeing new all the time profits in our trading performance. You can see our performance since 2018 in the charts here below (based on a strategy with 3 Future Contracts).
Our Soybeans Trading performance is skyrocketing! But there is a little secret: when we saw the descent during the COVID, I said to my Subscribers that we had to wait for the end of May before to see the beginning of the real uptrend; in the Soybeans Market I also said that I bet on higher levels than January 2020 levels by the end of the year; nailed! If you do not believe that I wrote it one year in advance, you can wait a few months, when I will make the 2020 Grains Bulletins available to anyone for free (or you can order it now, but we are at the end of the year, not sure it is worth ordering it now).