Corn Futures ZC1 - Spooling Like a Turbo
Diupdate
Because virtually the whole world is suffering from massive drought this summer, many crops are in bad shape. This is true with the U.S. cotton crop and it's also true with the U.S. corn crop, which according to USDA reports, barely half of is in good or excellent condition as of last week.
This is significant because the U.S. is the largest global producer of both, and by a huge margin.
This gives good cause to believe that a pump is on the horizon, but when, and how easily will it arrive?
The good news is for latecomers is that it seems as if the Ukraine panic pump and dump from April+ bottomed out in July, based on recent price action. "The second mouse gets the cheese."
There's a big gap on corn and wheat remaining from the June doom candle, which should transpire as a range that gets eaten into as we head into later September and October.
Winter may very well be new all time highs, because the world and humanity is in a lot of trouble. The environment is not in good shape, but to understand what this really means, you have to throw away the leftist-socialist-establishment "carbon" narratives, because those things are not only distractions, but they exist as a Communist Party pretext to take away your Freedom of Movement.
But just look at the lack of water and functioning ecosystem and ask yourself how long the happy is going to remain in North America.
The situation in Europe is already very dangerous.
Regardless, with the way price action has traded this month, it seems likely that corn futures has a good shot of breaking July's high before the end of the month. But it also looks like it may not run in a straight line up and take care of that business on Monday or Tuesday.
If you get a retrace into the 597 range, it seems there's a functional trade. However, it's entirely possible that August fails to break July's high. But if you can get out over 640 all the same before the month closes, you'll have done pretty well.
As for the rest of that gap above, I don't think we see that until the next commodities supercycle starts, likely beginning to ramp in late September-October.
Today is like a turbocharger. They all take a bit to spool. But once they do, it's really fun.
Unless you're the one standing in front of the Ferrari.
This is significant because the U.S. is the largest global producer of both, and by a huge margin.
This gives good cause to believe that a pump is on the horizon, but when, and how easily will it arrive?
The good news is for latecomers is that it seems as if the Ukraine panic pump and dump from April+ bottomed out in July, based on recent price action. "The second mouse gets the cheese."
There's a big gap on corn and wheat remaining from the June doom candle, which should transpire as a range that gets eaten into as we head into later September and October.
Winter may very well be new all time highs, because the world and humanity is in a lot of trouble. The environment is not in good shape, but to understand what this really means, you have to throw away the leftist-socialist-establishment "carbon" narratives, because those things are not only distractions, but they exist as a Communist Party pretext to take away your Freedom of Movement.
But just look at the lack of water and functioning ecosystem and ask yourself how long the happy is going to remain in North America.
The situation in Europe is already very dangerous.
Regardless, with the way price action has traded this month, it seems likely that corn futures has a good shot of breaking July's high before the end of the month. But it also looks like it may not run in a straight line up and take care of that business on Monday or Tuesday.
If you get a retrace into the 597 range, it seems there's a functional trade. However, it's entirely possible that August fails to break July's high. But if you can get out over 640 all the same before the month closes, you'll have done pretty well.
As for the rest of that gap above, I don't think we see that until the next commodities supercycle starts, likely beginning to ramp in late September-October.
Today is like a turbocharger. They all take a bit to spool. But once they do, it's really fun.
Unless you're the one standing in front of the Ferrari.
Catatan
The fact that corn went up in a straight line so easily took out the monthly high and then nuked leads me to believe that lows are en route. There's lots of news about how bad of shape the U.S. corn crop is in. Lower prices tend to preclude major upward moves.
Catatan
On the hourly, corn looks like it wants to correct before pushing higher:Catatan
Corn 4H now has this inauspicious head and shoulders developed.I think corn will moon hard, soon, but this range may just have been distribution.
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