FOR WEDNESDAY (5/16): Grains may have bottomed for the week and look higher on Wednesday and probably into Friday. Meats are due for at least a one-day bounce. Still, grain and hog markets could yield unexpected surprises on Wednesday due to a surprise cycle so watch these markets carefully on Wednesday.
TRADING RECOMMENDATION: Wait for morning comments.
TODAY’S COMMENTS: (5/16) Corn prices gained some ground Tuesday after forecasted rain could slow the place of planting, which nearly caught up to the five-year average this past week. Market only did a 3-wave bounce. Much above 403.50 and we will see 405.50 quickly and negate a breakdown. Cycles look good for higher prices on Wednesday, so we wouldn’t press shorts. Good chance you are out of shorts but if not, get out at the market now. Market will have to close under 389 to get the bears really scrambling. Not sure it will happen the next few days.
OVERALL: We hedged 50% of July corn at 400.50 on April 30. Hedged another 25% of July corn at 403.
CYCLES OVERVIEW: Higher Wednesday; higher into Friday; lower into May 22.
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