FOR TUESDAY: (11/22) Seasonal fund buying is taking over but not sure how long it will last. Grains should correct Monday’s irrational exuberance on Tuesday but probably be higher on Wednesday and then retracing next week for a better set up buy. Hogs are celebrating Christmas ham early and cattle are tiring and we should be ok with shorts now there.
MARCH CORN (electronic ok)
TRADING RECOMMENDATION: Stand aside.
TODAY’S COMMENTS: (11/22) Market went above 356 opening the door to 364.00. Cycles are still mixed with the 29-day cycle weak the rest of the week but seasonals are strong. Funds seem to be in crazy mode. Sellers into next week will need to wait for 365 or a reversal pattern. Thin holiday conditions always makes for fun trading.
OVERALL: There are so many vulnerable spots in January with the larger cycles that we do not know how long we can hold out waiting for it. Fundamentals are not supportive at this point either. Sept. corn got as low as 312 last August and monthly chart patterns would allow 279 if there are not bullish factors coming to roost. At the moment, 300 corn would not be shocking and if you have reason for early sales we will jump on more hedges and sales near 387 basis March. Rally into late Dec. and possibly mid-January are typical set ups for new sales.
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