FOR THURSDAY: (1/19) Usually grains are lower on Thursday but there’s one cycle that might hold the market open all day. We sense that the grains may come off over the weekend. Running out of time for hogs and cattle, and they are getting heavy but still should hold up another day.
MARCH CORN (electronic ok)
SWING TRADING RECOMMENDATION: Buy March corn at 359.50 with a 353.75 stop.
TODAY’S COMMENTS: (1/19) Didn’t get close enough to our buy area but still open to buying based on pattern that suggest retesting 359 and making at least a slight new high to 368.50-369.50. If grains hold up longer, 371 and 375 are possible.
OVERALL: Patterns ideally would be complete closer to 369.75-371 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. .
WEEKLY CHART: We have a good chance to get to our original sell zones near 371-375 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.
CYCLES OVERVIEW: Higher Thursday.
