WHEAT
- Looking for Spring Wheat conditions to continue to deteriorate
- Could see as much as a third or more of Spring Wheat rated Poor/Very in Monday’s report
- Extended two week forecasts show little change
According to the LAWG 647 Model (LAWG) July Wheat turned bullish on June 9 and remains in an uptrend today. It will take a close at or below $3.97 ¾ on Friday to reverse the trend to bearish. It will become increasingly more difficult for July Wheat to turn bearish over the next three weeks and then the odds flatten out. Despite the bullish news I did put out a short term sell recommendation and could have been filled at $4.71. The reason for this recommendation is that according to LAWG the July wheat is three standard deviations above the 98 week average. Can it go higher? Yes, but it is in the area where odds suggest a pullback is highly likely. Keeping in mind past performance and reactions are not indicative of future events. Earlier today I did notify those make use of the LAWG Trades I Like Numberology to move July Wheat stop to $4.71 Break Even.
SOYBEANS
- Favorable conditions will prevail over the Midwestern Soybean area next week
- Should experience continued rain events and an absence of damaging high temperatures
- It is expected that positive growing conditions will be continue for at least the next two weeks
According to the LAWG 647 Model (LAWG) Soybeans continue to be in a long term downtrend. Last week provided the best chance in a very long time to reverse the bearish trend. All July Soybeans needed to do to go bullish was to close a mere 11 ¾ cents higher on Friday the 16 than on June 9. But alas that was not to be. Going into this Friday we need a close at or above $9.66 ¼ which is 27 ¼ cents higher then on the close of June 16. Reversal values will only become moderately easier to achieve over the next six weeks. LAWG is telling us to look for higher values to sell. As always LAWG Trades I Like Numberology strongly suggests the use of stops.
The risk of trading futures and options can be substantial. Each investor must consider whether this is a suitable investment. Past performance is not indicative of future results.