FOR THURSDAY: (5/10) Grain cycles are mixed, with many suggesting a recovery into Friday but we‘ve seen them invert so often that we like to stick with patterns. If wheat completed 5 waves down to 500.50 and pulled corn down for a divergent low, then we could get a recovery into Friday. Have to leave grains alone and the trade may leave them rather congestive before USDA report.
JULY CORN (electronic ok)
TODAY’S COMMENTS: (5/10) Doubt that 406.75 will come out, with 3 waves down projecting at least 397. Have more of a bias now for a pullback the next few days, and we’ll want to get some shorts on.
OVERALL: We hedged 50% of July corn needs. Hedged another 25% of July corn at 403. Market managed to close above 400 and we expect a congestive mess that will probably stay below 407. Not going to rush for new sales but we’re inclined to sell before the report.
OVERALL: We hedged 50% of July corn needs. Hedge another 25% of July corn at 403 to do more.
CYCLES OVERVIEW: Volatile Thursday; lower Friday.
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