FOR FRIDAY: (1/27) A number of cycles early next week suggest recoveries for grains and livestock so we’re reluctant to press shorts. Cattle may have a big fall on Friday and then that will set up a buy for next week. Hogs look like they topped but have a recovery next week. Without a secondary high for grains, there’s nothing to sell. Not likely to do much on Friday but we do have a lot of set-ups by Monday for next week.
MARCH SOYBEANS (electronic ok)
TRADING RECOMMENDATION: Wait for morning comments.
TODAY’S COMMENTS: (1/27) Lower support at 1046.75 hit. Lower support at 1043. At this point a 3-wave bounce to 1060 may be all we get for a secondary sale to set up. Still, some cycle highs are on target until at least Tuesday so we’ll be patient and wait for a bigger bounce.
WEEKLY CHART: (1/27) Three waves up projects 1120 but wondering if it has a chance now without new weather. Major weekly chart resistance is at 1157 but it would take another weather crisis to get it higher. Selling 90% of old crop in the 1100-1120 region makes sense given a huge acreage coming. While we see problems in June with this market, any trade problems with China could lead to a plunge to 920. The market has gotten ahead of itself with funds jumping on flooding in SA but somehow Mother Nature finds a way to rebalance. Cycles are weak in February. Beans will pull back to at least 1000-992 into late February.
CYCLES OVERVIEW: Generally higher into Jan. 27-30; lower into Feb. 1.
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