FOR TUESDAY (8/7) Grains may be sideways before the USDA report on Thursday but with an upward bias and they are very oversold so we have to wait for better levels to sell. Corn could make a new high. We have a bias toward higher grains the next few days and the weaker than expected crop conditions report will have short-covering happening. Beans still have technically issued a sell signal as have weak but a larger retracement is coming and we are not going into the red after being in profits so often. Cattle looks higher much of this week.
SEPT. CHICAGO WHEAT
TODAY’S COMMENTS: (8/7) Thursdays spike high to 592.50 and quick reversal was enough to confirm a high and it did drop more than 30 point. Still, there is a lot of retracement room for a secondary high to 577 before a move to 548 may come in. Crop report was friendly with ratings down 4%. Not sure that 592.50 print is the absolute high for the season yet and crunch new numbers and data. Cycles are positive this week and without a better risk/reward, we cannot touch this market without a secondary high coming in later in the week.
CYCLES OVERVIEW: Topping Monday night; lower into Aug. 7; higher into Aug. 9-10.
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