US grain markets squelched by coronavirus so expect choppy trading this week

The grain market bulls continue to be squelched by the coronavirus outbreak and its implications on worldwide demand for grains.

15 February 2020

4 minute read

By: Jim Wyckoff

North America

Prices still in longer-term uptrend but rally stopped right at the 2018 high, suggesting the $5.93 area will be strong longer-term chart resistance to overcome in the coming weeks

Longer-term price uptrend recently negated to suggest a choppy and sideways trading range at least into springtime

Recent sideways price action favours the bulls.

Move below chart support at $3.75 1/4 would produce chart damage to suggest lower prices. Move above chart resistance at 4£.94 would give bulls fresh power to suggest a price uptrend can be sustained at least into springtime. © Jim Wyckoff

Price uptrend negated and downtrend line now in place

Sideways-lower price action likely in near term. © Jim Wyckoff

Market had become oversold and was due for recovery

See that RSI has produced bullish double-bottom reversal, suggesting the market has put in a near-term low © Jim Wyckoff

Accelerating price downtrend remains in place

Soybean meal will have to see technical posture improve in order for soybean futures to recover. © Jim Wyckoff