For two days now the dominant Chicago crop futures markets have been tickling our hopes.
Friday and today prices started moving higher soon after the open and had nice runs higher. On Friday corn stumbled badly and ended up below the open, and soybeans was dragged back most of the way it had gained, but wheat at the Chicago Board of Trade managed to rise a bit, fall back a bit, but remain a bit better than it had begun the day.
On Monday things are looking better in general, even if wheat stumbled off a good open. Wheat ended up, corn ended up, soybeans ended up. All after nice runs steadily higher through most of the day. Looking at a five day chart, my mind lets me believe that this looks like a nice, rounded bottom to the recently plunging market – like an out of control airplane pulling out of a death spiral near the ground – and if I can just imagine hard enough, I can see that curve continuing up higher, higher, higher.
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Wouldn’t it be nice if this was the bottom, near the end of October, at perhaps the worst of the harvest pressure impact, and the rest of the year was a steady progression upwards into the land of good prices?
That’s the problem with charts. You can look at a one or two day trend, project it into the future, and believe the whole world has changed for the better.
But maybe this time . . .
