Last week was a week of modest gains in corn, soybeans, and wheat. Corn finished the week up +0.07; soybeans were up +0.46; and wheat was up +0.22. All three are trending up with strong weekly trend strength as measured by ADX. The weekly ADX for corn is 38 (above 25 is strong); soybeans are the strongest with a weekly ADX of 57. Until price shows otherwise, the bias is bullish for all three of the grains. The uptrend in grain prices is good news to farmers. The U.S. Department of Agriculture reported that farmers will get a record $4.60 a bushel for this year’s corn, up 60¢ a bushel from the 2007 harvest. Soybeans are expected to sell for a record $11.50 a bushel, up a $1.10 from last year. The monthly chart of soybeans tells the story.
Chart Courtesy of TradeStation.
Dr. Charles B. Schaap is the author of ADXcellence —Power Trend Strategies. He is a full time trader of futures and equities. His website is www.adxcellence.com .
