Commodity Roundup

13 Dec 10
Commodities

Corn
Looks like we are starting to get another wave higher after bouncing off of the 61.8 fib retracement. My swing trade system has initiated long positions. I’d like to see a rally past the 620 high CH11. If that occurs my next upside objective would be 675. Weakness before taking out 620 could spell a new downtrend. I think we have room to run higher.

Soybeans
Similar situation in the beans however last week ended a little weak. The rally needs to take out the high of 1355 to confirm strength. If that happens, my next upside objective would be 1470 SH11. RSI and MACD all are trending higher. Weakness below 1355 could begin a downtrend for the time being.

Wheat
Wheat in both KC and CBT have had a good couple of weeks. We are now up against resistance and overbought. We risk a double top if the market gets weak here which would signal to me a new trend lower. If we rally past the resistance in the face of being overbought, that would indicate pretty good strength.

Cattle
Looks like both feeders and lives are trying to let off some steam from recent strength. From the last wave in the LCJ11 contract we are nearing the 50% correction We are still clearly in an overall uptrend so long as the 104.1 area doesn’t get taken out by weakness. Watch the 61.8% fib (106.382) for market direction. Strength above it buy. Weakness below it sell. RSI and MACD are both trending lower indicating more weakness to come.