FOR FRIDAY: (6/8) Would think that end of the week short-covering might set in ahead of the USDA report on Tuesday. Beans hit extended target of 973 and corn not far from lower target. Wheat failed at a key number near 537 and came off quite a bit. We always worry about Friday hedging pressure for July wheat this time of year, and it’s probably a sale.
TRADING RECOMMENDATION: Wait for morning comments.
TODAY’S COMMENTS: (6/8) Our lower additional profit target of 374.50 hit and we’ll assume that you are mostly out by now. Additional support at 373 and 367 would seem likely based o patterns. Would think end of the week short-covering will hit but it may not mean much if there’s no weather shift over the weekend and the trade pushes the market down again on Sunday/Monday. Not seeing any reason to be long.
OVERALL: Daily chart suggests support to 363 with a weak bounce to 385 next for a late bounce. Patterns project 342 but we are not ready to wrap our head around that.
CYCLES OVERVIEW: Sideways to lower and short-covering Friday; lower Sunday; short-covering Monday; higher Tuesday.
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