FOR THURSDAY (5/17): Thursdays aren’t usually kind to grains or meats but there‘s a friendly cycle into mid-day that may allow a recovery. Meats and grains are too oversold to sell and if new lows come early, the trade may short-cover.
JULY CORN
TRADING RECOMMENDATION: Wait for morning comments.
TODAY’S COMMENTS: (5/17) Corn gave back gains quickly and failed to take out 405.50 and issue a breakout. We may see a bounce on Thursday but usually the market is lower on Thursdays, and we see no reason to buy. Friday looks higher. Not going back into shorts unless we can do so from better levels. Market will have to close under 389 to get the bears really scrambling. Not sure it will happen the next few days.
OVERALL: We hedged 50% of July corn at 400.50 on April 30. Hedged another 25% of July corn at 403.
CYCLES OVERVIEW: Higher into Friday; lower into May 22.
