FOR MONDAY: (07/03) We’ve seen this cycle happen before July 4th where the market gets all excited and then falls apart after the holiday. The fundamentals for North Dakota shouldn’t spill over into beans and corn but the funds like to play this game and are not farmers. The gift is higher prices for bean and corn growers to hedge and sell as there are not problems unless the weather changes going into pollination. In the end, if you sell and hedge before July 4th, you usually come out ok. We luckily took profits on short July grains last Tuesday to get out of the way but got back into new crop too early. We can make a case for one more day up and markets close early on Monday so be sure to check with your broker. Cycles for wheat could be up as late as Friday now and we just do not know when the funds and commercials will separate a problem in North Dakota from the rest of the complex. In any case, this rally is a gift given very good corn and bean crops coming.
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