FOR THURSDAY: (5/24 no change) We’re concerned about thinning holiday conditions already in the cattle markets, and it’s always difficult to take a grain position out over a long holiday weekend. We have a bias toward lower grains into Thursday with Friday maybe being position squaring. Cattle are already looking ahead toward the COF report on Friday. It looks like cattle could be up into the report and be lower after Memorial Day. Grains may also be up on Friday and have some follow-through into Monday night but it’s always the hardest day to play. We see any rallies on Monday night followed by massive selling when the trade comes back from the holidays. Between the China ping-pong trade match and weather markets, we just have to be as flat as possible.
TRADING RECOMMENDATION: Wait for morning comments.
TODAY’S COMMENTS: (5/24) Not getting the pullback we need to think about getting long. First support at 1028.50 and 1022.25 with a new high next week possible to 1055. Hard to take a position but the market may remain bid until 1070-2 is in and we get through June 1.
CYCLES OVERVIEW: Lower into May 24; short-covering Friday; volatile Monday night; lower into Tuesday/Wednesday.
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