Weekend Update - Grains

CORN
As expected, the corn market enjoyed nice upside price action this past week.

Based on structure, my interpretation is that this market indeed made an important tradable bottom at the 302 L.

I believe structure is in the process of completing minor 5 of intermediate (3) of primary [A]. It is unclear if 5 has finished or not. It may need an additional leg higher, but appears complete to me.

Once 5 finishes, if not already, we should see an intermediate degree corrective.

The 38.2% retracement of (1) sits at 374. This is right in the middle of the 4th of lessor degree.

Notice that we have broken out from the channel, suggesting that the move off the 707 H has indeed completed. Also notice that price blew right through the 200 sma.

The critical level to watch is the price extreme of (1), which is 347.60. Should this retracement trade through that level, then something is obviously wrong.

Bottom line - I am expecting a retracement process for the upcoming week, assuming 5 has finished. Be on the alert for a triangle or some type of complex pattern due to the form that (2) took.

All prices basis December contract.

SOYBEANS
It was upside price action for the soybean market this past week.

My interpretation remains the same. Primary [C] of cycle b of supercycle (a).

It is possible that structure has completed a 5 wave move higher off the 878.75 L. I have this labeled as intermediate (1).

It is also worth mentioning that I have a triangle alternate view. Price needs to take out the 1040 H to invalidate this count.

Should (1) be complete, I have put the retracement levels on the chart. I would like to see price maintain channel integrity on the retrace.

The key levels to watch for the upcoming week are the 1040 H and the 878.75 L.

The minimum upside objective is 1060.25, where [C] = 61.8% of [A]. [C] = [A] 1172.50.

There is a cycle peak due Tuesday.

We do have a slight RSI divergence as well. RSI last peaked at the early August highs. Price has made two successive highs while RSI made lower highs each time. This is something to watch.

Bottom Line - I will assume that all systems are still a go for the preferred count until proven otherwise.

Look for some wave (2) retracement for the upcoming week.

All prices basis continuous contract.

WHEAT
The wheat market, like the other grain markets, saw nice upside price action this past week.

I interpret structure to be in minor 5 of intermediate (1) of primary [A]. It is very possible that we are much further along in this count than I am giving it credit for.

It is unclear, but we may have completed minor 5 on Friday. If so, that would also finish (1).

We tested both the channel and 200 sma this past week, and failed them for the time being.

Friday's action finished very ugly. They put in a nice shooting star candle on heavy volume. Basically, price got to resistance, where it was sold hard. Not a very bullish development.

Bottom line - As stated last week, I need to see a channel break and an impulse higher to get 100% behind a cycle degree bottom. I believe both are forthcoming, however, we have not seen them yet for confirmation.

All prices basis December contract.