Rip-Roaring Bull Markets Are Taking Corn, Soybean, and Wheat Prices Higher

Corn, soybean, and wheat prices are surging in a bullish market. December corn futures hit a three-year high at $5.36 1/2, while November soybeans rose to $12.88, a two and a half year high. December soybean meal topped out at $348.90, a more than two-year high, and December soft and hard red winter wheat both broke through $7.84 and $8.44 1/4 respectively.

Strong bullish fundamental factors and technicals are propelling this bull run. Soybean prices jumped on concerns over West African cocoa quality and strong export demand from China. Winter wheat futures have received support from worries about grain supplies from Russia and Ukraine.

Technical indicators suggest the market is temporarily short-term oversold and a price correction is expected. Traders will be watching USDA crop progress reports and heavy rains in the U.S. Corn Belt are boosting prices. Weather events in China and potential El Nino impacts are creating supply concerns.

The outlook remains positive, but traders should prepare for a market correction.