FOR TUESDAY: (5/22) Despite the strong Sunday rallies, the smart trade knew to sell. Grain cycles look lower into Tuesday and probably Wednesday. Crop plantings were better than expected and not likely to provide much relief. The issue may be how much more corn get in Michigan and Wisconsin.
TRADING RECOMMENDATION: Wait for morning comments.
TODAY’S COMMENTS: (5/22) Three waves down projects 399. Much below 397 and something is wrong. Five waves up project 418 by the time this market is all done–and if planting progress in Northern States is abysmal, the trade may worry about lost acres and replanting to beans. Not going to sell but market isn’t done until June for seasonals.
OVERALL: We hedged 50% of July corn at 400.50 on April 30. Hedged another 25% of July corn at 403.
CYCLES OVERVIEW: Lower into May 22 and probably May 23.
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