FOR MONDAY: (5/7) Grains look lower on Monday and recovering on Tuesday and then lower on Wednesday with the trade waiting on the USDA report on Thursday. Cycles are mixed into the end of the week but more inclined to see a negative report reaction. If wheat doesn’t get enough rain in drought-stricken areas, that will be a game changer and that will impact Monday. At the moment, they are looking for a bit more rain.
JULY CORN (electronic ok)
TRADING RECOMMENDATION: Wait for morning comments.
TODAY’S COMMENTS: (5/7) Market didn’t fall much but wheat could drag it down today. Staying open for 410-11 for more hedges. We’re not going to try to top pick with a solid close above 401. Not sure when reality will set in that the crop will go in ok. Eventually the daily chart pattern now would be more complete later in the season to 411 and 418. Not seeing crop problems unless it’s too much rain this year and may not be a problem until June.
OVERALL: We hedged 50% of July corn needs. Will wait for 410 and 418 to do more.
CYCLES OVERVIEW: Next key swing low into May 7; higher Tuesday; lower Wednesday.
Comments are closed.