FOR THURSDAY: (1/26) Often difficult to see grains higher on a Thursday but a larger cycle into Sunday night/early Monday my allow them to stay up. Cattle are waiting for the COF report and should be sluggish. Hogs still have time and room to go higher.
MARCH SOYBEANS (electronic ok)
TODAY’S COMMENTS: (1/26) Lower support to 1046.75. Market holding key 1050 region. Market likely to have some short-covering here but negate chances 1108 and 1120 unless it happens much later in Feb. Market still could recover into Friday if new weather emerges but technicals have turned so we should be selling secondary rallies.
WEEKLY CHART: (1/26) Three waves up projects 1120 but wondering if it has a chance now without new weather. . Major weekly chart resistance is at 1157 but it would take another weather crisis to get it higher. Selling 90% of old crop in the 1100-1120 region makes sense given a huge acreage coming. While we see problems in June with this market, any trade problems with China could lead to a plunge to 920. The market has gotten ahead of itself with funds jumping on flooding in SA but somehow Mother Nature finds a way to rebalance. Cycles are weak in February. Beans will pull back to at least 1000-992 into late February.
CYCLES OVERVIEW: Generally higher into Jan. 27-30; lower into Feb. 1.
