FOR MONDAY: (6/25) Corn is the most vulnerable to the upside because of pollination, and that is starting to issue a buy signal. Some hope for grain bulls if we get hotter temperatures in July and weird weather patterns. Markets are so beat up they really have to factor in pollination so the path of least resistance is up. Market looks lower Monday/Tuesday but the should come to life. Grains do look higher the first week of July overall so the worst may be over if the market can do secondary lows this week and offer a light hedge buy in case of pollination. Cattle on Feed was neutral to bearish and now the market could even be lower into Wednesday. Hogs are oversold and may have a chance to rally with a 5-wave pattern just about complete.
JULY CORN
TODAY’S COMMENTS: (6/25) Would be healthy to get a few-day pullback but then we have to gamble on being long into the weekend hoping for a hot scare to push this market up as we move into pollination. Cycles suggest it will happen so we’re inclined to buy pullbacks. Initially, corn will have trouble getting through 360 and 363. Could see a 3-wave rally to 368, and that could set up a sale next week. Beans offer better fundamentals. We have suggested some hedges at 382 on December and more could be done at 389.
OVERALL: Corn bounced off of the lower projection to 338.50 over 20 cents, signaling a temporary bottom and a 3-wave bounce to 360 or 368. Market still not out of the woods for eventual move to 320 or 310 but it has hit fundamental value based on the last USDA report.
CYCLES OVERVIEW: Lower into Tuesday; higher Wednesday; higher into Thursday; volatile Friday; higher into July 2; lower into July 3; higher into July 5 and 10.
