FOR TUESDAY: (1/24) Markets are relatively quiet. Meats are looking out to USDA report later in the week. Grains are rather sluggish with the trade wondering if Trump will hurt relationships with China and hurt grain exports. Grains look higher on Wednesday and if there’s no bloodbath on Tuesday, we may still be open to buying but are going to be patient. Same for meats.
MARCH CORN (electronic ok)
TRADING RECOMMENDATION: Wait for morning comments.
TODAY’S COMMENTS: (1/24) Not getting a pullback but without one we have no risk/reward. If minimum pattern comes in at 372, then the game could be over. Pullbacks have suggested 362 but running out of time although this market could and should hold up another week. We will leave it alone at this point.
OVERALL: Patterns ideally would be complete closer to 369.75-372 and 375 has an outside chance but those numbers may take new SA weather problems or a surprise out of USDA. We’ll stay short into Wednesday and possibly add on Monday. Upper target of 387 would take a lot to happen but is not impossible. Market should hold up into Jan. 27-30.
WEEKLY CHART: (1/20) We have a good chance to get to our original sell zones near 375 but 387 would take a lot and a very bullish surprise to get up to. Taking out the weekly chart trendline at 351 will be important to allow for something more dramatic to the downside. Old crop could get some help from ideas growers could slash acreage in 2017 by 4.5 million bushels. If the 90 million new crop acres holds, it suggests December 2017 rallies are possible to the $4.40 level, which would be a profitable place to hedge. With corn showing at loss at current prices, we have to wait quite a while until June as usual. There seems little point in early hedging unless you have cash needs and then you have to watch Jan. 27-30 and Feb. 5 for pulling the trigger.
CYCLES OVERVIEW: Generally higher into Jan. 27-30; lower into Feb. 1.
