FOR MONDAY: We can buy grains on dips this week as seasonals are supportive, the markets are oversold and cycles are friendly. Cattle look lower this week and need a rally on Monday to get short into Thursday. Hogs aren’t clear and are complicated with many crosscurrents and will let the dust settle.
DEC. CORN (electronic ok)
SWING TRADING RECOMMENDATION: Hold Dec. corn shorts from 353 and 349 with a 361.50 stop. Exit 354.25. Buy Dec. corn at 354.25 with a 347 stop.
TODAY’S COMMENTS: (10/2) We had hoped for corn to reach lower to 348-9 on the report but it was better than expected but still the highest stocks level in 30 years. Cycles are higher much of next week and the daily chart patterns could go back up to 367 before the market turns lower again. We should get out on any harvest pressure over the weekend rather than ride this market up for a week with a drawdown. Support at 355 and 354 with resistance at 359.75 now.
OVERALL: (9/12) At some point in October we could have a 26-cent bounce before a final low. Major weekly chart support at 312 should hold.
CYCLES OVERVIEW: Recovering higher next week.
