FOR FRIDAY: (2/2) Poor U.S. exports and the prospects for improved Argentina weather pulled soybean futures down a second consecutive day, with “spillover” to blame for mixed wheat results, and with corn ending slightly higher after another choppy day. Grain markets are a bit overbought and we have a number of turns due here for a pullback into at least Monday and possibly a bit longer. Not sure if the bull market in wheat will end, and we expect more problems with Brazil later in the month so not sure we should turn bearish grains. Hogs look lower into Monday.
MARCH CHICAGO WHEAT (electronic ok)
TRADING RECOMMENDATION: Wait for morning comments.
TODAY’S COMMENTS: (2/2) Wheat almost go to lower support at 441 and missed by a few cents but then took off. Weather shows more moisture in the forecast but that can change quickly. Wheat projects a 5th wave to 467 if you want to gamble on longs. Cycles have been mixed enough that we’ll pass. Daily chart patterns would allow 479-83 if weather woes continue but need to figure out when that next cycle high will come in.
CYCLES OVERVIEW: Lower into Monday.
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