FOR THURSDAY: (10/12): Trade waiting on the USDA report on Thursday. Cycles the next few days are more bearish than bullish but corn and wheat are very oversold and hit key support patterns, so we have to assume they buy the news on Thursday and retrace Friday and then be higher early next week. Grains are too oversold to chase at current levels. Cattle looks lower the next few days and hogs still should recover.
DEC. CORN (electronic ok)
TRADING RECOMMENDATION: Stand aside.
TODAY’S COMMENTS: (10/12) Patterns suggest a trading range between 344-348. Market is rather oversold and more harvest delays and a friendly USDA report might bring 355 at best into next week, as the market has the look of a congestion triangle. The last of the bullish Oct. grain cycles should peak by Oct. 18-19 and we’ll confirm that with more analysis in the next few days. Will be hard to sell the market close to key support.
FUNDAMENTALS: Private exporters reported to USDA the sale of 5.9 million bushels of corn OVERALL: Eventually harvest pressure will do this market in as seasonal lows come in Thanksgiving. We still could even get down to 312 based on weekly and daily chart patterns. Cycles are higher much of next week and the daily chart patterns could go back up to 367 before the market turns lower again. We should get out on any harvest pressure over the weekend rather than ride this market up for a week with a drawdown.
CYCLES OVERVIEW: Volatile Thursday; lower Friday; higher Sunday; recovering into Tuesday.
