FOR THURSDAY: (6/21) Thursdays are often lower for grains and the 29-day cycle is weak. There should be a day-trade sale in the morning, and it could turn into a secondary low into Monday. Corn is the most vulnerable to the upside because of pollination, and that is starting to issue a buy signal. Getting closer to Cattle on Feed for Friday, and that can get dicey. We hope we get enough downward momentum to make money on our shorts.
TODAY’S COMMENTS: (6/21) Market should be lower on Thursday but harder to sell now. A push to 363 needs to come in next week. Short-covering strength continues so we’ll leave it alone and see what develops.
OVERALL: Corn bounced off of the lower projection to 338.50 over 20 cents, signaling a temporary bottom and a 3-wave bounce to 360 or 368. Market still not out of the woods for eventual move to 320 or 310 but it has hit fundamental value based on the last USDA report. We have taken no protection on Dec. and will need a pollination scare in early July to salvage decent prices. We had noted this is a wet year and rains with hot weather creates greenhouse conditions so we’re not that hopeful.
CYCLES OVERVIEW: Lower Thursday; mixed Friday; lower into June 25.
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