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CORN, WHEAT, SOYBEANS and OATS

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Agricultural commodities are testing their decade-long trend line supports and are likely to rebound in the coming months. Prices are expected to rebound from such strong trend supports and in most cases put in a medium/long-term bottom. Especially when more than one trend line overlaps around the same area, it increases the significance of that support.

Higher prices in agricultural commodities could bring back the memories of 2007 where food inflation and shortages were the main concerns of the public. Most of the agricultural commodities are back to 2006 levels. Given the significance of the long-term supports, agricultural commodities could see an increase in demand in the second half of the year.

You can find more information on these agricultural commodities by clicking the links here (CORN, WHEAT, OATS, SOYBEANS, SOYBEAN OIL).

CORN

1st month continuation CORN futures contract – WEEKLY SCALE

 

WHEAT

1st month continuation WHEAT futures contract – WEEKLY SCALE

 

OATS

1st month continuation OATS futures contract – WEEKLY SCALE

 

SOYBEANS

1st month continuation SOYBEANS futures contract – WEEKLY SCALE

 

SOYBEAN OIL

1st month continuation SOYBEAN OIL futures contract – MONTHLY SCALE

 

OATS

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OATS

Long-term symmetrical triangles are powerful chart patterns to trade. They have defined boundaries and breakouts from these type of consolidation patterns are usually followed by strong trend periods. Consolidation ranges are considered to be low volatility periods where price fluctuates around the moving averages. Low volatility periods are followed by high volatility periods and vice versa. As a result long-term consolidation patterns unfold into a large-scale up/down trend periods.

SOY MEAL

In March 2012 we have identified a 4 year-long symmetrical triangle on Soy Meal. Breakout from this chart pattern resulted in a multi-month uptrend. Similar technical set-up is present on Oats price chart after 4 year-long sideways consolidation. Breakout above 400 levels could result in a strong uptrend. Soy Meal reached its price target at 550 levels. After a confirmed breakout I will update this chart with the possible price targets. For now we should put Oats on our watch list for a possible strong breakout.