FOR FRIDAY: (1/12) Not sure we learned much on Thursday except that the trade is willing to throw beans off a cliff as SA weather improves. Trade waiting on USDA report for Friday. Grain cycles look like short-covering will happen now and then next week looks higher for grains. Cattle also seems in trouble for another day. With the long holiday weekend, we have to move stops down tightly on meats and exit by the close on Friday. Pre-holiday short-covering could happen but hard to go long without key numbers coming in.
MARCH CORN (electronic ok)
TODAY’S COMMENTS: (1/12) We didn’t learn much on Thursday. At worst, 345 could come in on the report and then the market might rally from oversold conditions next week. Looks like a recovery next week after the report but we’re not clear where it’s going but we often see seasonal strength into the 3rd week of January.
NEAR TERM: Market may hit 338.50 if you’re patient into Feb. Trade will probably do short-covering on Friday. Not thinking 345 will come out even if we get a bearish report.
OVERALL: Weekly chart trendline support is at 338 and that seems a natural place this market will go this winter. Computer models give a small chance for 320 but we’re dubious.
CYCLES OVERVIEW: Higher into January 11-12; recovering into Jan. 22; lower into Jan. 24.
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