Corn, wheat reach lock limit prices for 2nd day!

Soybeans was up nearly 43 cents today, and has since reversed back to the settlement price on Friday.

Wheat and corn both touched their lock limit prices, and have since sold off somewhat. This is what I expected as a consequence of the conditions I elucidated in my last posting. This reversal and sell-off is more emblematic of a healthy market, and it relieves some of my anxiety.

One of the Signs of a Market Top or Bottom

Oftentimes, markets will experience exponential price expansion on high volume at the apex of a bull run. The fact that prices have retraced somewhat today, following such extreme prices that were reached Friday and earlier today, is good for the markets and will make for a healthier and more sustained continuation of the bullish trend in grains. This phenomena is healthy, I believe, because it will tend to wash out extreme and unreasonable speculation so that the bullish trend may continue.

The upper chart shown below is today's corn, and the lower one is wheat. Both charts were captured about mid-session before the later retracements, so the retracements are not depicted in these charts.