July Wheat - Steady to 1 Lower
July Corn - Mixed
July Beans - Steady to 1 Lower
Live and Feeder Cattle Update:
The weekly live cattle chart has confirmation that a top is in place. We have a big double top working from the 2014 high and if you look at the last 8 to 9 bars on the right (most recent) of the weekly chart, you will see a spike up and down, then a narrow range below the high.
The June Live cattle daily chart has a small (almost) double top working. 3 days ago the traders tried to test the high but the sellers took control before that could happen. After a down day yesterday, June cattle gapped up then the sellers took control again and the trade printed a lower low today. This is all leaning bearish. Take a look at the June Live Cattle daily chart.
The April 2024 Live Cattle chart is still in an uptrend, but might be trying to top out. The chart has 3 higher highs or pushes and today gapped up then sold off, which is bearish on the day. We need a close below 178.225, which is yesterday's low, to confirm a top is in place for now.
August Feeder Cattle is also working on a triple push higher and has failed to make new highs for the last 2 trading days. The deferred feeder cattle charts are structured similarly and appear to be stalling out. A couple more days of trade will confirm a top.
Overall, with prices as historically as high as they are, there are probably some good hedging opportunities for cattlemen. Check out the August Feeders chart.
July Wheat marked an impressive up day today off of it's double bottom or "W". In fact, it closed about 20 cents above the May 3rd low, which is the first W point. This is an excellent sign that the W structure has more confidence. Check out today's 8 hour July Wheat chart.
The fact that July Corn closed about 7 cents above the 571 resistance is a win for the bulls today. 571 should now be support and the next target higher is 600. If 571 does not hold, there is more support at 560. 600 is also about the halfway back up mark. You will see this on the 4 hour corn chart.
For both corn and beans, confidence is building that a solid low point on the daily chart is in place. July Soybeans corrected almost 78% down today, after the monster rally yesterday.
The first down correction after a probable impulsive up move is usually very deep - 78% or more.
We have reason to believe that July Soybeans doesn't need to print a lower low, at all or not by much. While the liquid continuation bean chart's low to the left is 1288.50, the other 2 continuation charts have that same low marked at 1350.
Therefore, on the latter 2 charts, the low has already been eclipsed by some 45 cents or so - meaning that probably enough week longs have been pushed out of beans for a new up move to begin.
Yesterday's up day was the biggest since the March 31st report day. The bulls were in a hurry to rally - this says something. Support is today's low at 1315, then lower at 1302. You will see that the 30 minute bean chart is working on an inverted head & shoulders, which points to higher prices.
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