FOR FRIDAY: (6/29) Trade gearing up to a long holiday week and Friday’s USDA report. While we favor longs into Sunday/Monday, we could get lots of craziness first on Friday and Monday. Minor cycles are weak but the larger cycles are supportive and may allow a recovery if we get any movement lower on bearish numbers. Usually hard to survive the meat grinder here. So far, it’s a great crop except for too much rain in some areas. Hogs and Pigs report was bearish but maybe only one-limit down move and it then will bounce next week.
TODAY’S COMMENTS: (6/29) We’re rolling to the Dec. contract, which is trading about 20.50 cents above July. Support at 363-364 is probably a buy if you want to gamble on a recovery into early next week. Should see at least 381. Ideal pattern would project 389 and would be a first place to hedge. Market would have to take out 400 to reverse the weekly chart, which points lower. Will be hard for 360 to come out until it’s clear that all rains are timely through pollination. Corn is growing so quickly in some areas that it may be pollinating early so any weekend rains are not going to be supportive for longs into Monday. Usually the most difficult day of the year to trade but we think it will be a buy, and we can’t hedge until higher.
CYCLES OVERVIEW: Volatile Friday; higher into July 2; lower into July 3; higher into July 5 and 10.
Comments are closed.