FOR TUESDAY: (1/30) Funds continuing to want to buy and are supported by weather. The 30-day cycle is higher on Tuesday and with cycles inverting, if there’s to finally be a reversal, it may not be starting until Thursday. Still a lot of mixed signals but the momentum is there and we won’t fight longs and top-pick wheat or beans just yet. Not all Feb. signals are lower. Some of our weather data continues to point toward problems in Feb. for S.A., and that may mean a bottom is in and we won’t get a seasonal downtrend. Still crunching data. Cattle are also wild this week and we have the semi-annual inventory out on Wednesday.
MARCH SOYBEANS (electronic ok)
TRADING RECOMMENDATION: Wait for morning comments.
TODAY’S COMMENTS: (1/30) Beans stalled near the old highs at 1015 but could get pulled to 1024 if wheat supports the market. Too much rain here in some areas but not thinking that is really a problem. Still, we’re starting to sense that we’re not having a normal crop or normal weather in South America, and we can’t ignore the technical signals. At this point 3 waves down could go to 999-1000 over the next few days but we still need to get a handle on action on Feb. Month-end fund-profit-taking is also looming.
CYCLES OVERVIEW: Key turn into Wednesday morning—-probably a low.
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