FOR MONDAY: (6/11) Oversold conditions from last week should lead to a recovery into at least June 18 for grains. Short-covering should start sometime by Monday night at the latest, and the trade is concerned about the USDA report on Tuesday, which has to have pleasant surprises given oversold conditions.
TRADING RECOMMENDATION: Wait for morning comments.
TODAY’S COMMENTS: (6/11) Beans hit 962.50 and are rather oversold. It’s possible that a final wash-out to 940-944 could happen early in the week before short-covering hits for about a week. We wonder if beans will wash-out all the way down to 900 before we get even close to the summer and pollination problems. Market is so oversold on the week that its hard press new shorts here even if they work. Monthly chart trendline has key support at 949-53.
OVERALL: Monthly chart trendline has key support at 949-53. More than likely a year with a June low and then pollination problems in the summer and recovery but unclear where yet.
CYCLES OVERVIEW: Lower Sunday; short-covering Monday; higher Tuesday; lower into Wednesday; higher into Thursday; higher into June 18.
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