Corn and soybeans started the session higher today, but met profit taking shortly after the opening. Meanwhile, wheat was up from reports of flooding in the Queensland province of Australia. Equities were stronger on optimism that the economy is headed in the right direction. For now, concerns regarding the debt crisis in Europe have been brushed aside. Be advised this problem is not going away soon. It is a long-term issue that will rear its head again. In grains, traders are focused on weather in South America. Argentina and Brazil have a chance for showers during the next few days, which weighed on corn and soybeans today. Meanwhile, the next mover and shaker in the market will be the final crop report on January 12th. Currently, my greatest fear for the grains is that there is little fear among the bulls in being long at these levels.
March corn traded to 634 this morning, which was close to a target mentioned in previous comments at 635. Prices turned down and are due for a setback to 612. For the intermediate-term, the wave pattern points to a move higher to 655 or possibly 680. Be alert for an important top that could occur a couple of days before the crop report. However, it may be third week of January depending on when the pullback from 634 ends and the speed of the subsequent rally.
Old crop sales should currently be at the 70 percent level.
March soybeans rallied to 1409 this morning and broke on profit taking. Support is expected at 1365. Once the pullback is over, there should be one more rally to 1420 or 1460, which could be an important top. Watch for a peak during the same period as corn.
Old crop sales should be at the 60 percent mark.
March wheat was the leader of the grains today trading to 825, which broke through last month’s high of 811. However, the market sold off late in the session and closed in the lower third of its range. Provided that we hold support at 776, prices are on track for a move higher to 845. Meanwhile, a rally past the high made in August at 864.25 projects an advance to 890.
Old crop sales should be at the 70 percent level.
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