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More commodity tops – now in soya. Wheat rallies to resistance

Soya beans and soya meal both made top extensions yesterday. This comes two days after the same signal in cotton, as reported in the last edition.

beans, meal top exts

This is an opportunity to short-sell either one of these and to review the whole grain complex as this probably means that the rallies in corn and wheat over the last few days will also end hereabouts. We have no fresh signals in either of these last two but wheat has rallied back to an old compression just overhead - ringed in the next chart. These older compression signals always provide resistance in such cases.

Corn has retraced all of the sharp drop inspired by the USDA report in late April and this means that wheat is also a short-sale candidate whereas corn probably isn't at the moment, lacking other evidence. We may get some soon and will of course report it immediately.

Wheat & corn update