FOR TUESDAY: (10/3) Cycles and seasonals are positive this week and this week hold the best chance for gains and then some sideways congestion early next week before the next USDA report. We need to complete more research on cattle and hogs to have a clearer vision on trading for the month of October. We can buy grains on dips this week, as seasonals are supportive, the markets are oversold and cycles are friendly.
DEC. CORN (electronic ok)
TODAY’S COMMENTS: (10/3) We got filled on long corn thinking that if we’re patient over the next week we could see 365-67, which would be a gift considering the huge supplies on hand. Support at 348.75 in the worst-case scenario. For now it’s a speculative buy and a sale into next week.
OVERALL: Eventually harvest pressure will do this market in as seasonal lows come in Thanksgiving. We still could even get down to 312 based on weekly and daily chart patterns. Cycles are higher much of next week and the daily chart patterns could go back up to 367 before the market turns lower again. We should get out on any harvest pressure over the weekend rather than ride this market up for a week with a drawdown.
OVERALL: (9/12) At some point in October we could have a 26-cent bounce before a final low. Major weekly chart support at 312 should hold.
CYCLES OVERVIEW: Recovering higher this week.
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