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| Grains lower yet again for the 7th day in a row. Are we near a bottom?
Taking a look at the charts, we are nearing some support. So if we are going to get a bounce now would be the time.
I think we will probably see corn start to stabilize here, as July corn has held the April lows. We are sitting at a support zone here. An area where I’m not getting aggressively short.
I still think we are going to see $5 Dec corn at some point. Does it have to happen? Absolutely not.
But I think we are going to have a weather scare due to the heat that’s on its way. If that heat comes to fruition during pollination it’s going to do some damage despite our subsoil looking the best it has in years.
If you aren’t comfortable or if you disagree with me. You have to get comfortable. Be in a spot where you aren’t stressing about it.
If you are someone who is scared of the potential downside, this recent sell off has made options cheap again. So if you want to put a floor in here for a few weeks you can get it for pretty cheap.
Soybeans also sitting close to some support. If we can hold those April lows, a 50 cent bounce or so wouldn’t be too unlikely and $13 beans sometime this year isn’t out of the realm of possibilities. At the same time, if we fail to hold those lows. The downside target is all the way down at $10.70..
Wheat needs to get some business. It doesn’t matter what Russia doesn’t produce if it doesn’t lead to business. Still potential for more headlines to drive wheat higher, but it’s going to need more headlines or some business to keep the rally.
I’ve seen a lot of guys talking about stupid cheap prices this year..
$8-9 beans and $3 corn.. I’m not gonna say that can’t happen. But when they are saying that’s going to happen they are just spitting fear out to you guys. There is just as good of a chance we see higher prices.
Them saying these crazy low predictions is them trying to intice you into making sales and giving your product away..
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Grains near bottom? Are stupid cheap prices possible? Market comments
