FOR WEDNESDAY: (5/10) Not sure the USDA report means anything in May and the bounces for beans and corn today were healthy short-covering. We still see weaker cycles overall this week and would use any rallies to continue to add shorts. Soybeans closed higher to recover yesterday’s losses amid reports of slow planting in the Midwest and the likelihood of more delays as storms move from the Rockies to the Atlantic this week. We’ll have some strategies in the morning based on overnight action but it’s likely to be short-covering.
JULY CORN (electronic ok) start here.
SWING TRADING RECOMMENDATION: Hold July corn shorts from 368 and 369 with a 377.25 stop. Exit partials at 361.50
TODAY’S COMMENTS: (5/10) Waiting to take partial profits at 361.50 but market could languish before the report. The chances of a breakdown below 361 is strong this week. The planting pace slowed in Illinois, Indiana and Ohio due to frequent rain. Central Illinois fields were wet and some grain dealers this week said it may be later this week before planting resumes. The 6- to 10-day outlook (May 14-18) is dry for the Midwest but cool in eastern areas of that region.
CYCLES OVERVIEW: May 10 low; May 11-12 low.
