FOR THURSDAY: (2/2) Our patience paid off as the friendly cycle finally gave the market a lift. We will use this rally to starting adding corn shorts and may have to be more patient with beans. Cycles are more clearly lower Friday and Sunday and we’ll make sure that the grains markets do not get too far ahead of themselves.
MARCH CORN (electronic ok)
TODAY’S COMMENTS: (2/2) Market looks friendly all of a sudden with 5 waves up projecting 371 and support at 365. Can put some order in. Possible that more can develop than we are expecting but skeptical past Thursday’s high.
OVERALL: Patterns ideally would be complete closer to 372 and 375 for a divergent high but doubtful that will happen unless it happens in March. If 349-351 holds on breaks in Feb, we may be hopeful for higher prices but may be asking too much. Only demand is keeping this market up.
WEEKLY CHART: (1/20) Starting to give up on 372-375 for an ideal sale and 387 would take a lot and a very bullish surprise to get up to. Sometimes in March you can get a recovery if damage is not too bad in Feb. Taking out the weekly chart trendline at 351 will be important to allow for something more dramatic to the downside. Old crop could get some help from ideas growers could slash acreage in 2017 by 4.5 million bushels. If the 90 million new crop acres holds, it suggests December 2017 rallies are possible to the $4.40 level, which would be a profitable place to hedge. With corn showing at loss at current prices, we have to wait quite a while until June as usual. There seems little point in early hedging unless you have cash needs and then you have to watch Feb. 2 and 5 for pulling the trigger.
CYCLES OVERVIEW: Lower Friday
