FOR WEDNESDAY: (7/5) We dread the 4th of July weekend. Weather going in is bullish and some cycles point higher into Friday but usually if you get something on by July 4th you do well in the long run. Buy Dec. 400 puts or Nov. 950 puts may be one way to play it and withstand the craziness. Cattle look higher on Wednesday and hogs also higher into Friday so not sure there’s any point in getting too bearish anything. Markets don’t reopen until Wednesday at 8:30 am and that’s when our next report will be.
NOV. SOYBEANS (electronic ok)
TRADING RECOMMENDATION: Wait for morning comments.
TODAY’S COMMENTS: (7/5) Beans went beyond upper pattern completion at 978 and that could allow 1018 to come before they are done. We’ll be patient. Use Nov. puts if you need to put some hedges on. We have this crazy wheat market which really has no impact on beans but its influence is there and may not go away. Cycles for wheat are stronger next week so we’ll be patient. Luckily we banked nice profits on July beans last Tuesday.
WEEKLY CHART: The upper target on July is 1006 which is 1018 on Nov. beans. Still early to call a top on beans so we will be patient with new hedges and cash sales but every year selling before July 4th usually works. Use Nov. puts to protect your crop.
CYCLES OVERVIEW: Volatile Wednesday; higher into Friday; lower into July 10.
