FOR WEDNESDAY: (1/31) Grain markets are a bit overbought but there is a climax cycle on Wednesday and the chance for profit-taking setting in before the month-end positioning by funds will increase volatility. Market could turn lower into Monday. Not sure if the bull market in wheat will end soon, and we expect more problems with Brazil later in the month so not sure we should turn bearish grains. We may exit short corn into Wednesday if not stopped. Cattle sideways before the semi-annual report on Wednesday.
MARCH SOYBEANS (electronic ok)
TRADING RECOMMENDATION: Wait for morning comments.
TODAY’S COMMENTS: (1/31) Beans hit upper resistance. We do expect reversal energy but not sure what part of the day it will hit. We’ll patient but see a pullback into Monday. Weather problems here could create an acceleration to 1027.50 but not seeing it. For now we’ll see how the market reacts on Wednesday before selling on Thursday.
OVERALL: Upper daily chart patterns to 1031 if 1010 starts coming out soon. Doubt that pullbacks into Monday will take out 985 or 980 without a collapse on weather.
CYCLES OVERVIEW: Key turn into Wednesday morning–probably a low.