FOR FRIDAY: (3/31) Patterns on all the grains suggest one more low and then short-covering into the end of the week and the USDA report. Will it happen on Friday at the report announcement? Starting to seem that way. Stats often have the market lower after the March acreage report. Continue to take profits on shorts and scalpers can do a light long. Market does look higher after the report into early next week but will it kill bottom-pickers first. Dollar and crude are starting to recover, with the latter a positive for grains and the dollar projecting 101.00 and crude looks higher much of next week.
JULY CHICAGO WHEAT (electronic ok)
TODAY’S COMMENTS: (3/31) Willing to wait for key pattern completion at 427.25 on wheat to exit but stops are very tight locking in profits. Not in a rush to buy. Larger patterns into April suggest two more new lows. While traders expected only a modest reduction in spring wheat acres to show up in Friday’s USDA Prospective Plantings, some traders are bracing from a lower number if farmers shift acres to soybeans. Lower support to 419.
SHORT-TERM: (3/14) Daily chart support is at 427 and 419. Spring low could be down to 405. Dryness problems haven’t shown up in weekly crop ratings and world supplies have been abundant.
CYCLES OVERVIEW: Volatile Friday; higher into Monday.
