FOR TUESDAY: (6/20) Crop conditions report showed a 4-point fall in wheat conditions and it might allow some spillover buying to corn and beans and get those market higher into late Tuesday or early Wednesday so that we can sell. Grains opened higher but maybe only wheat can run away and use rallies into Tuesday night and early Wednesday to add to shorts and hedges and cash sales. Cattle sill in trouble and still can be hold but buy dips on hogs.
JULY CORN (electronic ok)
SWING TRADING RECOMMENDATIONS: Hold July corn shorts from 381 and 380.50 with a 392 stop.
TODAY’S COMMENTS: (6/20) Market almost hit 375 and left a gap in the 383.50 region. Weather forecast could create a bigger push lower as rains hit on Wednesday. Not thinking that 385 will come out and we should tough out any congestion the next few days if corn goes higher because of wheat. Not worth getting in and out but we’ll add shorts to any strength into Tuesday night or early Wednesday.
OVERALL: (6/14) One always has to hedge this mid-June weather rallies as they rarely last. Weather cycles aren’t hot and dry enough this year that we have to worry about a drought but the 90-day forecast is above normal in some areas. The 2-year cycle doesn’t support a drought nor the 12-year cycle nor the 29-year cycle so we’re not seeing problems. Weekly chart trendline support is key at 366. Have to use any strength for dumping of cash corn or hedging futures.
CYCLES OVERVIEW: Higher and then lower Tuesday; lower Wednesday.
