FOR WEDNESDAY: (1/4) The dollar reversed to the downside today sharply but crude did also so another mixed bag day. Grains cycles are often lower the first week of the year and patterns and cycles suggest weakness. Cattle should recover but are a bit overdone and a minor pullback is healthy so far. Hogs may bounce for a day to set up a sale on Thursday.
MARCH CORN (electronic ok)
TODAY’S COMMENTS: (1/4) We managed to get short corn despite weak beans. We doubt 360 will come out and cycles are weaker the rest of the week and we will stay short. Support at 353. Small chance for 365 but not in the cycles. Stops should go at 367 for now just in case and we would sell more if we got up there.
OVERALL: Three waves down would at least project 340 now if the market stays below 360. 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.
CYCLES OVERVIEW: Generally lower into Jan. 5.
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