FOR TUESDAY: (3/20) Grains fell hard and we missed shorts on beans and it’s late to chase wheat, and corn got dragged under the bus with the two of them. Rains in the U.S. Plains and in Argentina triggered sharp cuts in grain prices to start the week, with winter wheat, spring wheat, soybeans and soymeal all taking double-digit losses. Corn futures were also down nearly 2% on “spillover weakness,” despite another positive round of export data from UDSA.
JULY CHICAGO WHEAT (electronic ok)
TRADING RECOMMENDATION: Stand aside.
TODAY’S COMMENTS: (3/20) Support at 462 with a bounce possible to 477 so too late to chase here. Breakdown eventually would go to 448-50. The 475 is a scalpers buy zone but we see no reason to be a bottom-picker just yet. Key daily chart support at 450-3. Not going to chase here.
CYCLES OVERVIEW: Congestive into Tuesday; lower into Wednesday.
