FOR WEDNESDAY: (6/21) The trade is already playing the latest storms so not enough rain and they would go up. We’re at the point in the season where things usually fall apart and grains came off enough, except for wheat to suggest that’s the case so we may have to jump on more shorts tonight. Hot weather for wheat growers may create a new high there and we had seen that as a possibility this morning. That may help the rest of the complex.
JULY CORN (electronic ok)
SWING TRADING RECOMMENDATIONS: Hold July corn shorts from 381 and 380.50 with a 392 stop.
TODAY’S COMMENTS: (6/21) Support now at 366.50 and at best new shorts can go on at 374. Market is a key trendline support and if 369 goes, then it may start massive selling. Doubt 380 will come out now that the market is break and wheat is breaking. Last chance to get cash sales and hedges done probably for the 3-6 weeks.
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: Lower Wednesday.
