Path of Least Resistance Looks Lower
Finishing up the growing season and heading into harvest, the path of least resistance looks to be to the downside for Corn, Beans and Wheat.
Corn looks to want to test its recent low in Dec of 366 from Aug 13. If it manages to break that, a test of the 350 lows could be in order.
Wheat recently broke its 550 support and looks as if it could break to the psychological support of 500. The major reservation here is that the current 550 level already represents a 50% retracement from low to high. Technically, with Wheat coming off its highs of the year, and a perfect 1-2-3 top formation, a continued break seems likely.
Beans also look technically weak as they try to test the Aug 13 low in Nov of 851 1/4. If that doesn’t hold, a test of the double bottom near 826 seems likely.
All of this discussion takes its root on a technical basis. In the current global environment with trade wars and geopolitics, take everything with a grain of salt as something as simple as a single tweet could throw the market into a tailspin.