STALLIONS IN COMMODITIES…

The drop in equity indices seems to have boosted commodities, especially essentials.

Something that we posted on 1st Jan 25

Corn – Has been a sideways market but rising very imperceptibly over the last quarter or so. Currently at 458, it is right in to a major supply zone and seems to be standing firm in face of supply pressure. There may be a break out of sorts from here and we may see higher corn prices going into the 1st quarter of 2025.

And on 10th Jan 25, in a spurt of energy, corn broke through the zone, buying all available orders to settle at 470 with almost 3x volumes from day earlier. This seems like an impulse move and may have some way to go.

And we posted the following on soybeans

Soybean – On the longer timeframes, has been hovering around 1000 level. Recent price action has been bullish but not generating any significant momentum as yet. This market needs to be watched as it has some ways to go up if an impulse wave materializes as specific divergences are making themselves visible on the charts.

I had mentioned specific divergences on 1st Jan 25 and soybean rallied to 1025 on almost 4x volumes from day earlier. Again we are in favor of seeing further upsides on soybeans.

A bit of focus on brent crude oil. With a 3.69% move on 10th Jan and 3x volumes, the move may be significant as it may take care of all sellers sitting at the 80-81 level. However, we are not there yet. The market may take a breather and a proper risk return ratio cannot be obtained at this level. So better to wait this out for the time being.

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