FOR THURSDAY: (3/23) Cattle should pause after rallying parabolicly and fall $2-3 dollar off of opening highs. Wheat still has a long way to fall and beans need to catch up. Cold storage was bearish and we fell better selling looking for lower prices into next week.
JULY CHICAGO WHEAT (electronic ok)
SWING TRADING RECOMMENDATION: Hold July Chicago wheat shorts from 446.75 and with 451.25 stop. Take partials at 428.75 and 418.75.
TODAY’S COMMENTS: (3/23) Market breaking hard and hit first support at 435 within 1 cent. Stops can get moved lowered to breakeven after taking profits. Market shouldn’t take out 445 and continue lower to 427. Given a volatile week in the markets, we’re not going to add more shorts yet but would like to.
SHORT-TERM: (3/14) Daily chart support is at 435 and 418. Spring low could be down to 405. Dryness problems haven’t shown up in weekly crop ratings and world supplies have been abundant. Cycle lows dominate into March 25-26 and if we get a recovery after USDA, chances are it will be sold again. Look for 443 to hold with a bounce to 452 or 455 coming at publication. Five waves down on the daily chart projects 405.
