Report Favorable

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.