FOR TUESDAY: (12/27) Grains may be done to the downside by Tuesday and recover next week. We usually like to favor shorts into the end of the year but it may be that we get short-covering from oversold conditions into Tuesday’s low. The Dec. 1 cattle on-feed report looked neutral to a bit negative: on feed, 99%; placed in November, 115%; marketed in November, 117%. The Dec. 1 Hogs & Pigs report was a bearish surprise: total hogs, 104%; kept for breeding, 101%; kept for market, 104%. Cattle look lower all week and hogs may have a wash-out day on Tuesday and then have nowhere to go the rest of the week.

MARCH CORN (electronic ok)
TODAY’S COMMENTS: (12/27) It’s too late to be chasing as corn is a bit oversold. Patterns allow a bounce to 348 or 350 and then a push to 338. We wonder if Argentine flooding may affect trader psychology and start early short-covering although the thought is that its’s isolated and not important. Support is at 342 and 338 are possible before short-covering starts from Tuesday’s lows. We have a bias for a recovery into the end of the year even if seasonals do not support that notion and the market is a bit overdone.
CYCLES OVERVIEW: Recovering into Jan. 3.

Comments are closed.