FOR THURSDAY: (11/3) Grains were much weaker than we feared and even if we have a stronger night session, we still think the market is in trouble. Oil had its biggest build-up of inventories in 34 years and that is not good news for bio-fuel, and crude should easily fall to 40.00. Hogs should hold up a few more days but cattle patterns look complete with a pullback possible.
CORN COMMENTS: (11/3) Support at 341.50 and resistance up at 347.50 and 349.50. Market may bounce overnight to allow you to continue to get short. Doubt that we have to worry about 360 coming out with harvest pressure still strong and elevators running out of space to put the big crop. Cash basis is no reflection of the idealistic futures prices. Expect some upward congestion today.
OVERALL: Seasonals turn down here and we’re not sure what it will take to get this market tanking. Oats are strongly higher and they may be having a spillover influence. In the big scheme of things after falling 1.30, a 40-cent rally isn’t much. Proportions on the daily chart project 279 into harvest with extended lower prices to 262 seeming rather unthinkable.
