FOR FRIDAY: (5/12) Cycles seem lower still for grains on Friday and probably much of next week. If weather forecasts stay warm and dry, the market will probably tank next week so Friday may be the last chance to get on new grain shorts or hedges for the short-term. Cattle showing signs of bottoming but we’ll be patient and hogs probably lower to sideways on Friday.
JULY CORN (electronic ok) start here.
SWING TRADING RECOMMENDATION: Hold July corn shorts from 368 with a 377.65 stop.
TODAY’S COMMENTS: (5/12) We suggested taking off ½ of the position at 370.50 and did but the market is still vulnerable on Friday and probably Sunday and probably into much of next week. The USDA report is often a key turn for the month and it came in as a high. Channel support at 367.50 is probably Friday’s target. USDA’s domestic and world crop numbers in Wednesday’s monthly report remained supportive. U.S. ending stocks cut to 2.295 billion and next year’s to 2.11 billion. World ending stocks fort 2017/2018 came in at 195.27 million metric tons, down from this year’s 223.90 million.
CYCLES OVERVIEW: May 12 low; generally lower into May 18.
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