FOR WEDNESDAY (10/26) Once the rain departs late this week, forecasts indicate drier weather. The latest 6- to 10-day outlook (Oct. 20-Nov.3) has mostly dry weather for the Midwest next week with above-normal temperatures. The dollar was volatile, jumping to a 10-month high early against foreign currencies only to turn lower when the crops closed. Wednesday has a chance to be higher for grains. Meats may hold up another day or into early Thursday.
Stocks might hold up on Monday
FOR MONDAY: (10/24) Congestive play as usual as the trade shook off bad China data and a US cyber-attack. Without more major news, seems more likely that stocks might hold up on Monday if they are not down hard on Sunday night. We completed our monthly newsletter, Financial Visions into the Future and it is being published tonight. If you are not a subscriber, give us a call or you can buy a 1 month trial online for $29.95 at https://www.fortucast.com/sample_trial.aspx.
Weaker grain cycles this week
FOR MONDAY (10/24) Cycles turn weaker for grains this week and we would continue to sell and hedge rallies—if we get any more. If you have nothing on, you may have to go to the market Sunday in case hedge pressure hits the market hard. Cold storage report was one of the most bearish in history and cattle report was friendly. Much of the Corn Belt should be dry before storms emerge early next, focusing heaviest totals in the upper Mississippi River valley.
Weak equity cycles for Friday
FOR FRIDAY: (10/21) Cycles for Friday look weak or at best sideways for equities. Lately Friday is a throw-away day with position squaring before the weekend. Something more dramatic is possible. No major reports out except Fed Speak. Will we get new scandals over the weekend and will the press continue to ignore them? Yes. We’re moving toward a kind of Watergate Presidency if Hillary is elected and that’s not going to be good for financials. The Dems are going to have to sweep Congress if she is going to survive.
Corn cycles looking weaker next week
FOR FRIDAY (10/21) Harvest-friendly weather may have played a role with forecasters calling for dry days in the Midwest into the weekend. The 6- to 10-day outlook (Oct. 25-29) does put rain back in the Midwest then along with above-normal temperatures. We thought we could hold out another day to sale but beans got within ¼ cent of 990 and corn couldn’t get through the key Gann number of 360. We like to wait for reversals before top-picking and we’ll get short tonight now that they are clearly in for corn and cycles looking weaker next week. Cattle and hogs should be sideways before the USDA reports.
Four major financial market turns over the weekend
OR MONDAY: (10/17) We continue to move toward 4 major financial market turns over the weekend so changes of trend next week for higher gold and lower dollars has to be paid attention to. We do expect some huge event involving leadership or govt. over the weekend that will be a surprise given hourly headlines. Lack of confidence in leadership and government are strongest for the year from Sunday into the end of the month. Earthquake and violence cycles are stronger and cycles are very powerful for US government transformation. Will Obama have the leadership to push us out of this election mess or will he continue to threaten Russia to take attention away from Wikileaks? Trump is too strong and will not back down and not sure Hillary knows who she is fighting. Last few years, the markets have gone up the last few weeks of October but this is an election year so maybe more like 2008, which was a down October.
Cattle and hogs may bottom on Monday
FOR MONDAY: (10/17) Weather continues to be an impediment for Midwest farmers with rain through the weekend in the region. The 6- to 10-day outlook, however, reduces rain amounts in the western Midwest next week. Exports have continued to be supportive. We think harvest pressure will hit the market for a few days but it still may hold up into Friday. Cattle and hogs may bottom on Monday and turn up into Wednesday at least. Can’t get too bearish but may wait until Tuesday to buy.
Trend changes for higher gold, lower dollars next week
FOR FRIDAY: (10/14) Now the US will decide about its involvement in Syria on Friday in a further show of ‘ego-based’ stupidity. We continue to move toward 4 major financial market turns over the weekend so changes of trend for higher gold next week and lower dollars next week has to be paid attention to. We do expect some huge event involving leadership or govt. over the weekend that will be a surprise. At the moment, Friday looks more like sloshy position squaring at the end of the week.
Open to slightly higher grain prices on Friday
FOR FRIDAY: (10/14) Wheat was the big story on Thursday and it was a very unusual day that surprised us. Wheat export business included Egypt buying Black Sea wheat, Saudi Arabia in the market for nearly 600,000 metric tons, and Japan buying some U.S. wheat. Farmers harvesting Midwest corn and soybeans should have dry weather today and tomorrow in most of the Midwest. Rain is forecasts for western Iowa on Friday. But, the seven-day and 6- to 10-day outlooks still favor rain for the region. The 6- to 10-day outlook (Oct. 18-22) still favors above-normal temperatures for most of the country. Cycles are not there but would be open to slightly higher prices on Friday before harvest pressure kicks in so a gift for sellers and hedgers.
Gold remains under pressure
FOR THURSDAY: (10/13) Stock market looks weak overnight and in the early part of the morning. We’re counting on more crazy world news to pressure this market but if nothing happens it will probably recover. Next week looks more challenging. Still feels like there is some unraveling around the corner. Gold remains under pressure. Very possible that the low 1270’s area won’t come in now and that the market will ratchet lower to the 1240 region.