Commodities were higher today, as China did not raise lending rates over the weekend as was feared on Friday. This weakened the dollar giving the outside markets a lift as well as the grains. Scattered showers occurred in Argentina over the weekend, while conditions in Australia are expected to be drier during the next five days.
March corn traded past 585 today to 589, which increases the chance for an advance beyond 617.25 to 635. For this to occur, we need to hold 567. Cycle analysis points to a major top developing close to the end of the month.
Old crop sales should currently be at the 70 percent level.
March soybeans fell to 1269 in the overnight session and rebounded to 1314.25. I did not like seeing a decline below 1270, but no serious damage was done. Provided this morning’s low holds, we are on track for a rally past 1354.5 to 1365, 1400 or 1420. Be alert for an important top that could occur during the same period as corn. Meanwhile, there is one pattern showing that a peak may not develop until January.
Old crop sales should be at the 60 percent mark.
March wheat fell to 766.5 in the overnight session holding last week’s low at 766.25. Prices rebounded to 786.5 where resistance was encountered Currently, the short-term wave pattern shows the market working higher to 838 or 858. If the high made in November at 868.25 is exceeded, we could continue upward to 890.
Old crop sales should be at the 70 percent level.
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