July corn is still stuck in the trading range of $3.60 to $3.80. If this market can break out to the topside, it would shift the range bound pattern to a more constructive formation suggesting a test of $4.00 in July and $4.10 to $4.15 in Dec. This market is feeling more like it can make that trade this time up than in the past? Support in July remains from $3.65 to $3.60.
Protein concerns continue to lead the wheat trade with Mpls spring wheat gaining on all other classes. Target for Mpls vs KC in the July contracts is 1.50 over trade. Wheat continues to coil with both KC and Chi creating an outside day up to end the week. This is likely enough to see this market go after the highs of last week. If we can make that trade, there will be more active short covering develop. KC July could be a dynamic trade if this contract takes out the $4.44 highs. The trade to change the trend more positive in Chicago July will be a trade above $4.43. The KC/Chi spread trade in the July contract has stabilized at even. Do not see a reason for any additional weakness in this spread fundamentally but the big shorts are still in Chi and a short covering rally could push the spread back down another 5 cents with Chi short covering leading the rally. This would also be a chance to lock in that spread long KC. Mpls is still the best long if you can trade small and can handle uncertainty in setbacks.
July beans breaking down and taking aim at 9.00. Meal continues to chew a dollar lower every day, but is getting close to interim targets at 300.00. Do not press here and might be wise to abandon shorts for a moment. Resistance for July beans at 9.60 and some support is likely to develop at 9.00, but 8.50 would be likely target. July meal is testing 300.00. Come away from shorts, but come back to shorts on a trade to resistance from 310 to 312. There is a third count to 283.00 that is likely doable. July bean oil continued weak today testing next support 31.50. Nothing feels very good here, but all it takes is a pen stoke to change biodiesel and make it look very different. Resistance is still at 33.50 to 34.00.
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