FOR THURSDAY: (11/8) Trade can often congest in sickly ranges before USDA on Thursday, and that makes for boring trade. If you want to gamble on higher prices on Thursday, you can nibble at long corn and beans on Wednesday night or Thursday. Need a bounce on meats to get any risk/reward to sell.
TODAY’S COMMENTS: (11/5): Key support now at 872 for a 3-wave pullback. May come in at the report and then always tricky to withstand computerized trading and stops. Lower support then goes to 866. Resistance up to 898. Probably will be a buy if you want to gamble on a friendly report but upside seems somewhat limited.
WEEKLY CHART: (11/2) Key weekly chart resistance is up to 906-907. If 912 can’t come out definitively, then weekly chart patterns would still allow for 800. Lower end of USDA estimates is down to 7.35 so it wouldn’t be shocking to get this market back down if China fails. Another negative on the horizon is crude oil prices possibly going to 5000-5100. Hard to get too bullish and hedges into Nov. 12-13 may be necessary again. Funds got too crazy too quickly here.
CYCLES OVERVIEW: Higher Thursday/Friday.
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