FOR FRIDAY: (8/24) Grain cycles are still weak into Monday and while we had this week lower, we were unable to get anything short. Rain has come on time in August, increasing the chances for big soybean and corn crops. Farmers need to empty bins of old crop supplies, producers need to price basis and price later contracts before Aug. 31, and long positions must move out of the nearby contracts before first notice day. Some position squaring continuing before the COF report on Friday.
TODAY’S COMMENTS: (8/24) Didn’t quite get high enough to get late shorts on. We have hedges on and will most likely keep them until seasonal weakness is over in late September. Lower support could fall to 358.50 and 353.00. Hard to imagine another push up here coming if you have no protection on. Hard to sell this much down on the week but not going to go up much.
OVERALL: The lower daily chart pattern suggests 358 and 353. The larger bounce is annoying but the market should still come down.
CYCLES OVERVIEW: Lower into Friday and into Aug. 26.
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