FOR WEDNESDAY: (5/31) Corn opened sharply higher as the ping-pong match continues between 376 and 366. Markets were overdone on Tuesday and a bounce here is healthy. Downward patterns weren’t quite completed for wheat and beans so we’re open for another thrust lower. Cattle liked news out of China but still may be in trouble overall and look lower on Thursday. Markets moving toward position squaring for the end of the month by funds and that often distorts everything so continue to bank profits and move stops lower.
JULY CHICAGO WHEAT (electronic ok)
TODAY’S COMMENTS: (5/31): Market projects 423.50 but may not have 5 waves down until 414. We’re going to exit 423.50 and see what develops into Monday. Chances are the lower target will come in. Given seasonal pressure into mid-June, we’re OK holding but would like to get out if we can.
OVERALL: Seasonal pressure is always on winter wheat into late May and it can sometimes extend into mid-June. Three waves down on the weekly continuation chart project 3.99 and the USDA has given 3.85 as the lower end for where prices may go and they figure the market won’t get above 450. First place July wheat will fall is 418 and then 410-2.
CYCLES OVERVIEW: May 29-31 low.
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