FOR THURSDAY: (6/28) Trade gearing up to a long holiday week and Friday’s USDA report. While we favor longs into July 10, we could get lots of craziness first on Friday and Monday and won’t position ourselves. So far, it’s a great crop except for too much rain in some areas.
TODAY’S COMMENTS: (6/28) We can favor light longs for a few days into the report on Friday and have a light bias to be long into July 10. The issue is whether another flush down could happen Friday on the quarterly report and then we always have to deal with weekend weather changes. Corn is growing so quickly in some areas that it may be pollinating early so any weekend rain is not going to be supportive for longs into Monday.
OVERALL: I suspect that we have to use strength to hedge Dec. corn at the 382 and 389 region and we may get higher to 399 to 400 if we get hot weather the first few weeks of July with reduced rain. This is a wet year so it may be asking too much. I will look at July weather more closely.
CYCLES OVERVIEW: Higher into Thursday; volatile Friday; higher into July 2; lower into July 3; higher into July 5 and 10.
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