FOR MONDAY: (1/23) Markets look higher Monday and we’ll have to see how weather shifts over the weekend and maybe we will be able to play beans even though they are a bit vulnerable but probably not done. Still open to 372 on March corn at 450 on March wheat before hedges happen. Meats look lower on Monday if you’re into selling and can find a good risk/reward.
MARCH CORN (electronic ok)
SWING TRADING RECOMMENDATION: Buy March corn at 359.50 and 362.75 with a 353.75 stop.
TODAY’S COMMENTS: (1/23) Patterns on corn suggest 362 and 359 is possible. If grains hold up longer into the end of the month, 371 and 375 are possible. The fact that it did not come in on Friday is not a good sign that we’ll get it.
OVERALL: Patterns ideally would be complete closer to 369.75-372 and 375 has an outside chance but those numbers may take new SA weather problems. Upper target of 387 would take a lot to happen but is not impossible. Market should hold up into Jan. 27-30.
WEEKLY CHART: (1/20) We have a good chance to get to our original sell zones near 375 but 387 would take a lot and a very bullish surprise to get up to. Taking out the weekly chart trendline at 351 will be important to allow for something more dramatic to the downside. Old crop could get some help from ideas growers could slash acreage in 2017 by 4.5 million bushels. If the 90 million new crop acres holds, it suggests December 2017 rallies are possible to the $4.40 level, which would be a profitable place to hedge. With corn showing at loss at current prices, we have to wait quite a while until June as usual. There seems little point in early hedging unless you have cash needs and then you have to watch Jan. 27-30 and Feb. 5 for pulling the trigger.
CYCLES OVERVIEW: Higher Monday.
