Weekend Update - Grains

CORN
The corn market continued its downtrend this week.

Price took out the 312 L on Thursday and had a decisive close below it on Friday. This signals that primary [4] is indeed complete at the 373 H.

It appears that minor 1 and 2 are finished and 3 is underway. We should see price continue to accelerate as 3 of (3) hits its stride.

Notice that price moved back inside the channel after hanging around the upper boundary last week.

I am still looking for price to find its way down to the 270's. The minimum primary objective is 278.125, which is where [5] = the 61.8% of [1] - [3].

Other targets include 279, which is where (3) = (1). 3 = 1 at 273. So, there is nice confluence in that area.

Notice that volume has been declining since [3] completed. This is generally what happens in 5ths. RSI also looks like it will give us a positive divergence on this leg. Another 5th wave signature.

This coming week should continue to see price weakness. I would like to see price action make its way to the mid-channel line, where conveniently, structure may finish its multi-year correction.

All prices basis continuous contract.

SOYBEANS
The bean market reversed course and sold off the entire week.

It appears that we finished primary [A] at the 1040 H. If this is correct, we should be tracing [B], which would be followed by the final [C] of a double zigzag.

Price should maintain above the [X] wave low of 746.25. The 61.8% retracement sits at 858.50, which is conveniently near the (4)th of lessor degree.

Once [B] completes, targets will be 1263.75, where [Y] = [W] and 1066.125, where [Y] = 61.8% of [W]. We will also be able to get a projection off of [A].

The structure off the 1040 H appears to be taking the form of a zigzag, which would make sense, however, it's to early to make that determination.

All prices basis continuous contract.

WHEAT
The wheat market, like the rest of the grains, had hard downside price action this past week.

Price broke and closed under the 486 L. This suggests that intermediate (2) has completed.

It also appears that minor 1 and 2 are complete and 3 has started in earnest. If this assessment is correct, price action to the downside should accelerate as 3 of (3) kicks in.

We should attain our minimum primary objective of 465.75 in short order. This is 61.8% of [1] - [3]. [5] = [1] - [3] at 391.50. V = 38.2% of I - III at 385.125. There are several sets of fib numbers in this area.

Our nearest intermediate degree target is (3) = (1) at 417.50.

Like corn, volume has started to diminish on this leg. Again, this is suggestive of a 5th wave.

All prices continuous contract.