CJS Securities

Grains Report

Weekly Corn Continuous Close

Volatility to the max, wow! I am tired of just looking at the market, can’t imagine how all the traders are feeling!

Nothing has changed in the big picture with all the volatility, and my LT view remains the same until we have a significant upside Weekly Close.

 We now have a 38.2% correction from the highs, and the next couple of weeks will be critical to see if we have bottomed on the Weekly.  

 Once the correction is over, my ultimate target for corn is a new ATH possibly breaching $9.00 intra week.

Soft commodities having a tendency to extend further than one expects, so who knows just how high it could go!

 The rallies remain selling opportunities (profit taking) and buy the dips (getting long)! 

240 Min December 21 Corn Candle Chart Close

Volatility is here to stay no matter which road map plays out, either the triangle or the flat correction.

Yes, I say correction because although the moves have been massive, we are yet to take out the highs!  

 Although we have had a big upside move based on fundamentals, I would still advise taking some cash off the table while staying net long until we confirm the “new” Bull trend.

 If we are lucky enough to see sub $5.20, again, you will need to own it and wear it until we trade north of $8.00!

 I remain a proponent of BTD’s and take cash on the rallies!

Weekly WM Continuous Close

This chart has made a perfect 38.20% correction and has bounced like a champ off the lows!

 Continue to use the weakness to price, price & price some more with potential targets over R4000.  

 

Weekly YM Continuous Close

 After significant support at the 38.20% retracement, I am keen as mustard to buy all the dips!  

The chart is in a corrective phase and looking to break out to the upside and HARD!

 “Note I am not sure which expiry, but these charts lead me to believe that WM will rise like a Phoenix from the ashes to meet YM!” – not aging well yet!

Weekly KC Wheat Continuous Close

When trading US wheat, patience is the key, and we are waiting to buy until further notice.

 However, if you have to partake in this market, I would buy the dip sub $5.70.

 When this chart eventually rallies, it will rally hard and fast, and most won’t be able to get long!

 

Weekly Chicago SRW Wheat Continuous

Buy down to $6.13 if the chart gets that low.

I am super keen to own it!

 Wheat is set to rally hard in the coming months, and opportunity beckons! 

 

Daily Close KC Wheat v Chicago SRW Continuous Close

This chart has two outcomes IMO, it’s either going to play out in a straight rally or take everyone to the cleaners in a triangle.

If it’s the rally, you can only get long on Daily close over -$0.19, and if it the triangle buy the dip as momentum buying will only get you killed!

Weekly SAF Wheat Continuous Close

Continued consolidation on this chart still has me bullish, and I would not sell it at all.

 We are patiently waiting to buy a decent dip!  

Daily Matif Wheat Continuous Close

I am sticking with both views for now.

 This chart seems to be making a classical irregular flat formation.

 Buy at best with upside targets at €215, and this is a very ST trade, as once the kick is done, there should be more downside.  So – let’s see how this ages. (still in with a shout)

 The leg lower will be the chart’s last lower before a decent rally of €30+.