Crude Settles Highest in 27 Months

Gold New Record Closing High

This bull shows no signs of ending!

New Records for Corn

Corn has set two new records today. Corn has closed at a new record high of $6.7325, and has set a new all-time record high ($6.7375) in the closing moments of trading as well. This is probably bullish for a continuation of the bull trend in corn.

Corn In Short Supply, Continues Solidly Higher

The significantly smaller grain stocks for corn, fewer acres being planted this year, combined with delayed planting necessitated by rainy weather in the grain-growing regions, is pushing corn prices into record territory for a second day today. If the rainy weather persists, it may reduce corn planting even more, thus pushing prices still higher. Corn is emerging as the grain in shortest supply early in the growing season for 2008. Demand is also very solid and growing, especially with nearly 1/3 of America's corn being used to produce ethanol. This short supply and stronger demand is driving corn prices still higher today, as shown in this chart of the 3 minute and tick charts for today.

Note in this daily chart (below) for corn that two days of new record high prices have been set, including new closing highs, and eight consecutive higher closes have also been achieved. That's very bullish for corn prices! If corn prices continue like this, especially if we reach the upper price limit today, we will soon see expanded lock limits and higher margins, just as we have with the other grains. Time to take advantage while I can of the lower margin.

Meanwhile, Wheat Has Locked Limit Again

At the same time that the other grains have surged to new highs, wheat has once again reached its daily upper lock limit, which is also a new record high price and will likely be a new record closing high.

Soybeans Selling, Profit-Taking Begins

That was probably the shortest-lasting long-only decision in history. As you can see from this chart, soybean bullish exhaustion occurred just a few minutes following my last posting. I went short almost as soon as I sent the "send" button on my previous posting. As you can see from this chart, a head and shoulders top formed almost immediately, and prices only weakly set another new price high. Then, the bulls began to liquidate to take profits. This is evident from the heavy selling on the volume indicator that I have enclosed in a blue box at the bottom left of the chart. Volatility was still very good, and I shorted at the second shoulder for another profitable short trade.

I expect that more profit-taking will occur into the close, and then another bullish run will occur as people like me liquidate their short trades, causing another price spike before the closing bell for the week. I also anticipate a very high probability of a new closing high, as I indicated on my posting earlier today.

Soybeans Erratic, But Profitable

Soybeans trading has been highly erratic today, with more than 15 trades so far, and most have been very small. Fortunately, however, I've had only one very tiny losing trade. Soybeans prices have also set another new all-time high prices multiple times today, and will likely set another new all-time closing high, if price strength continues through the remainder of the session.

Soybeans: Trades 14-15

Trade 14 was an attempt by the soybean bears to defend resistance at yesterday's settlement price. It barely made a profit. When the Klinger Volume indicator turned bullish and profits were meager, I moved my stop to the top of the previous candle, where price movement took it out.

Trade 15 has proven once again that the soybean bulls are still very firmly in control. Prices have closed up again for the day! I've noticed that the best trades typically take off. This one was a good example of that. I closed it out less than one minute before the end of the trading session.

What a great day for trading. It had all the requirements for good trading, including volatility, solid movements in both directions, and excellent liquidity. What more could I ask for?