FOR WEDNESDAY: (1/17) We think beans are worth buying but won’t touch corn or wheat. Cycles are positive for meats into Friday and next Monday but have to be careful with their volatility.
MARCH CORN (electronic ok)
TRADING RECOMMENDATION: Stand aside.
TODAY’S COMMENTS: (1/17) Can’t get too excited here. Corn held key support at 345-46 and not thinking 344 will come out but bearish patterns project 339, and wheat is in trouble and there’s no news to bring grains to life. Not going to play longs. If we hit 339 and have a strong bounce, then that might change our minds for a scalp play. Such a counter-trend play is not worth doing.
NEAR TERM: Market may hit 338.50 if you’re patient. Trade will probably do short-covering on Friday.
OVERALL: Weekly chart trendline support is at 338 and that seems a natural place this market will go this winter. Computer models give a small chance for 320 but we’re dubious.
CYCLES OVERVIEW: Recovering into Jan. 22; lower into Jan. 24.