FOR MONDAY: (11/5) USDA report is sneaking in early on Thursday, Nov. 8 and will create congestion before it happens. We anticipate a positive reaction to it based on cycles. Market is still going a bit crazy from on again, off again Tweets around China and nothing definitive now until Dec. 1. Key numbers already came in for grains and if we take out last week’s highs Sunday, it may not be by very much and then sickly congestion. We looked at grain cycles for the rest of the month and at best they my hold up into Nov. 1 and then be lower until right after Thanksgiving. We have to see how high they go before we estimate the next cycle low, and prices for those lows. Hopes or the Dec. 1st China meeting may keep the markets from collapsing.
TRADING RECOMMENDATION: Wait for morning comments.
TODAY’S COMMENTS: (11/5) Three waves up projects 373.50, which missed by ½ cent but could come in on Sunday. The 375 region will probably hold until the USDA report. Support at 369 and 368 on pullbacks. Not much to do this week.
WEEKLY CHART: Upper end of the USDA range is 400. We can easily see 388 come in by mid-November. Key weekly chart resistance at 388 and 400 and we almost have to considering dumping cash if we see 390-400 by any miracle and seasonally we can sometimes put in highs into late January. Still working on 2019 growing season.
CYCLES OVERVIEW: Higher into Sunday; lower into Monday; higher Tuesday/Wednesday; higher into Thursday; higher Friday.