Corn Price Has Head Above Water

With such a bearish price forecast for corn this morning, based upon the USDA crop report, it is surprising to see the price of corn higher than yesterday's close. I consider this a bullish sign. If commercial hedgers are stepping into the market to buy at what they consider to be bargain prices, perhaps this is suggestive that the 50% Fibonacci level is the bottom for this season. This seems to underscore once again what I have observed in the past -- that fundamentals-related news can often be misleading. The market surprises me all the time! We must always remember that "anything can happen"!

Corn at Fibonacci 50% Retracement Level

This weekly chart for corn shows that corn is currently just above $5.10/bushel, which represents the 50% Fibonacci retracement level since the current corn bull market began more than two years ago. Note also that corn prices attempted to breach this same price, but found support at this same level in March of this year. Will it hold this time? We'll know soon!

Wheat, Please Meet Fibonacci!

Wheat prices today have reached the same Fibonacci level where they have retraced to lower prices in recent days. See here the daily chart, where you can see the Fibonacci levels from the most recent rise in wheat prices. I expect to see wheat prices fall from this level, as they have previously!