The January WASDE report was favorable. We have a reduction on the corn and soybean balance sheet, and a modest bump in the wheat carryout.
Traders reacted by putting in a swing low on the weekly corn chart. If we can get a above the downward sloping trend line, I think we will have confirmation that a new intermediate corn cycle is beginning. When we get a break of that trend line, I will change my sentiment to bullish. This is a market that was waiting on something to trigger it to do what it wanted to do and the WASDE report should fit the bill. The market wants a new intermediate and yearly cycle.
Soybeans did manage a lower close, but they no trader wants to be short below 12.60 on the NOV it seems. I remain confident on the recommendation to sell puts on 11/16. A break of 12.55 would be very bearish, and would confirm a failed soybean cycle.