FOR TUESDAY: (6/19) There’s slight improvement in the U.S. corn crop. As of Sunday, the USDA National Ag Statistics Service says the crop is 78 percent good to excellent. That’s a percentage point better than a week ago. The condition of the soybean crop is down a percentage point from last week at 73 percent good to excellent. Ninety-five percent of U.S. winter wheat is headed; 27 percent is harvested. Winter wheat is 39 percent good to excellent, while the SPRING wheat crop is 78 good to excellent.
TRADING RECOMMENDATION: Stand aside.
TODAY’S COMMENTS: (6/19) Corn closed under the key 360 area and it will be difficult to close above it now even if we get a 2-day bounce. Will the trade buy the fact of an improved crop? Cycles suggest a bounce here for a few days before a move to 349.75 and 343. A 3-wave bounce now projects 368. Not trusting this market but the worst may be over for a few days. If you’re still bearish, need to sell bounces to 368- 372. We will keep some corn hedges. A pollination scare is going to be needed to save this market but eventually this should be a wet year and the crop should be fine. We’re going to switch to Dec. corn soon and it’s 21.5 over so start watching it.
CYCLES OVERVIEW: Retracing higher Tuesday/Wednesday; lower Thursday; mixed Friday; lower into June 25.
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