Higher meat cycles into Wednesday

FOR MONDAY (7/25) Profit-taking finally set in at the close for grains but not after major capitulation. Key support for corn held at 333 and beans went through our lowest target of 976. The latest 6- to 10-day (July 26-30) outlook also lacks extreme heat for the western Midwest and has above-average chances for rain. Data that accompanied this week’s U.S. Drought Monitor said 2% of Iowa’s corn was in a drought area, 4% of Nebraska’s and 31% of Ohio’s. At the moment it seems that the Eastern corn belt will have more problems but then so much more is grown in the West. Cattle on Feed report was better than expected and cycles point higher into Wednesday. Same is true for cold storage and a bounce into Wednesday is likely.