Market Analysis: Grain Futures Trends Amidst Technical Shifts

June Grain Comment

By John Thorpe, Senior Broker

Corn was the first of the spring time grain bulls to negate recent uptrends with bears officially seizing technical control of July contract with a crossover Moving Average on May 29th  and hasn’t looked back; on that day the contract closed at $5.05 – BU; todays close was $4.88. ¾ – BU. I would expect a range trade for the rest of this month up until the July 4th vacation, when trends can quickly reverse.

The Soybean market was next : Friday saw the technical damage done when the Crossover Moving Average reflected an outright sell with a closing price of $12.05 -BU. 53 cents off it’s May 23rd high. Also negating the bullish spring time sentiment that ordinarily comes with a weather market. July Soybeans closed @11.84 ½ down .20 ½ from Fridays settlement. As recent price uptrends on the daily graphs have been negated, it appears, this market at best, will trade sideways between $11.50 and $12.20/BU

The best option strategies for sideways markets include, “Short Strangle”,” Iron Condor” , “Short Straddle” and “Iron Butterfly” please consult with your Cannon Broker if you have any questions about these or other strategies you can utilize in perceived side-ways markets.

The Lone holdout in the row crops and still in a very strong bull trend is the Wheat market. This springtime bull rally began mid April in the $5.60 – bu area and has gone as high as $7.20 – bu May 28th. Today we closed at $6.72 ¾ – bu down 5 ¾ from Friday’s close all done within a 30 cent range today!.

We haven’t yet done much technical damage, a close below 6.56 could trigger a sell, it’s wait and see here.

Although Wheat can move sympathetically with corn and beans, like today, it wouldn’t surprise us to see Wheat buck the trend and maintain it’s bullish technical credentials, this could be the “buy the Dip” moment with a reasonable risk management stop or put to cover.

If you are a day trader, below you will see markets that our proprietary ALGO has identified as being more suitable for attacking either from the long side or the short side for the next trading session.

Questions? We are happy to help!

Daily Levels for June 4th, 2024

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* This is not a solicitation of any order to buy or sell, but a current market view provided by Cannon Trading Inc. Any statement of facts here in contained are derived from sources believed to be reliable, but are not guaranteed as to accuracy, nor they purport to be complete. No responsibility is assumed with respect to any such statement or with respect to any expression of opinion herein contained. Readers are urged to exercise their own judgement in trading.