FOR TUESDAY: (4/18) We looked at cycles for grains into Thursday and they seem supportive so a light buy is favored. Cattle cook missed and hogs higher now into Thursday. Not sure if the geopolitical tensions will impact these markets much. Crude looks lower next week although any nasty surprises could push it up to 5500 first. The dollar may recover into Wednesday from oversold conditions.
JULY CORN (electronic ok) start here.
SWING TRADING RECOMMENDATION: Hold July corn longs from 371 and 375.50 with a 365.50 stop.
TODAY’S COMMENTS: (4/18) Corn plantings were behind schedule and that should lead to a bounce on Tuesday and the market was a bit overdone on Monday. Support is at 370.50 and 368 if the market slides too much. Resistance this week is at 382.00. Rains over the weekend as expected focused on the upper Mississippi River Valley, and most of the central and eastern Corn Belt could get two inches of more this week. Wet forecasts for the rest of April should provide some support for now, but large old crop supplies continue to hang over the market. Continue to move old crop corn to avoid getting stuck if the hoped for weather rally never comes this summer.
OVERALL: We like the long side of this market into next week and see 380-1 and then 385 next week. You can continue to buy on dips into early Tuesday and we should get a minor setback but not sure where yet.
CYCLES OVERVIEW: Higher into April 20.