FOR WEDNESDAY: (4/11) The monthly USDA report is often a cycle turn, and it came in as a high for beans and wheat. Patterns to the upside aren’t quite done for beans, and the wheat fundamentals are too good to fade. Normally we would project cycle lows for grains into Sunday/Monday based on our work, and that leaves us unable to pull the trigger. If pullbacks do come and they are minor, I suspect the grain markets will be a buy thereafter. We did have a bias for higher cattle the next few days and would like to buy. We don’t trust hogs but never sell on Wednesdays.
JULY CORN (electronic ok)
TRADING RECOMMENDATION: Wait for morning comments.
TODAY’S COMMENTS: (4/11) Patterns suggest that a 5th wave needs to lead to 407.50 to complete the recent rally, and that can happen. Support at 393.25. Resistance at 402. Lower support to 390 and 388. Cycles called for a positive reaction to USDA report but like most reports, it may signal a top as cycles are pointing lower into Sunday/Monday. We’re concerned about cycle inversions with the weather but we do have a lot of thunderstorms this weekend and that may be more helpful than anything to increase moisture in certain areas of the Midwest. Snow further up north will not be helpful.
OVERALL: The most important cycle low for April is due into April 16 and that may set up a buy. Unclear how that is going to come in but not thinking July will take out 375-380 or 400 the next 7 trading days.
CYCLES OVERVIEW: Mixed Wednesday; lower into April 16-17.
