FOR FRIDAY: (1/13) Seeing profit-taking setting in for beans and wheat on Friday and probably a sale early Friday and a 2-3 day hold. Cattle should be a buy for 2-3 days but we don’t like to deal with long weekends and winter weather changes. Markets are closed Martin Luther King day and reopen on Monday night.
MARCH CORN (electronic ok)
TRADING RECOMMENDATION: Stand aside.
TODAY’S COMMENTS: (1/13) Upper end for sales is up to 369-70 has to come if we are going to pull the trigger and we are in the middle with nothing to do until the extremes come in. Seems unlikely with just another day to go up and a failure under the key Gann 360 number. Possible that a longer time window could stretch it out. Some cycles might allow the market to hold up into the end of the month. Traditionally the market is often down after MLK day.
OVERALL: Patterns ideally would be complete closer to 369.75 has an outside chance but those numbers may take new SA weather problems or a surprise out of USDA. We’ll stay short into Wednesday and possibly add on Monday. We’re analyzing data for the rest of the month but usually don’t like to be long much past MLK day.
WEEKLY CHART: We have a good chance to get to our original sell zones near 371-375 but 387 would take a lot and a very bullish surprise to get up to. 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: Higher Jan. 12-14; lower into Jan 17.
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