FOR MONDAY: (3/26) Grain cycles remain complicated and USDA report on Thursday may lead to a lot of short-covering. Strong closes on Friday were from key pattern completions so minor pullbacks may lead to additional short-covering into Wednesday. We usually do not like to play this congestive week before the report. Cattle on Feed was bearish but the trade may fade it as the market is very oversold as is the hog market.
JULY CORN (electronic ok)
TRADING RECOMMENDATION: Wait for morning comments.
TODAY’S COMMENTS: (3/26) Stronger reversal off of key support may mean short-covering to 387 and 390.50. Cycles are mixed but not sure there is any point in new shorts before the USDA report on Friday and need some oversold conditions to be worked out before new shorts. Need to complete cycle work for April before making final decisions.
CYCLES OVERVIEW: Retracing Sunday and part of Monday; recovering into Tuesday.
