FOR WEDNESDAY : (6/28) We’re going to start selling more Dec. corn and Nov. beans as a fall into Sunday night seems pretty clear and the bounce may have worked out oversold conditions. Cattle are in trouble and can be sold and also hogs. Cycles are very volatile so watch markets carefully the next few days. Grains close an hour early on Monday before the holiday and don’t reopen until July 5 at 8:30 am so we don’t have to deal with night session during fireworks on July 4th.
NOV. SOYBEANS (electronic ok)
SWING TRADING RECOMMENDATION: Hold Nov. bean shorts from 920 with a 933 stop.
TODAY’S COMMENTS: (6/28) Sold 1 contract Tuesday night. We’re rolling to Nov. beans and took profits on July shorts. Nov. is 6.26 cents above July. Computer models give Nov. a 63% chance of going to 893 next. Taking out 933 would start to look a bit friendly for oversold conditions but not going to happen. Will start selling some now.
OVERALL: Daily chart suggesting 901 and if acreage increases, it’s possible that lower prices to 940 or 857will come. If the market gets a weather scare at best a recovery to 975 might happen. Assuming we will see 893 first.
WEEKLY CHART: Given that the market is close to 895, key support, we wonder if a breakdown to 837 or 850 is likely before it’s done when hedging pressure enters.
CYCLES OVERVIEW: Topping and sideways; generally lower into Sunday night.
