Soybeans and Meal are clinging to support where a breach under 840.0 July Beans or under 2.95 in July Meal could potentially lead to a jailbreak to the downside technically. Downside targets could then be 812.2 for July soybeans and 269.6 in meal. Corn has shown some life lately and sits almost 20 cents from last weeks lows. It can be argued we have all but negated the April swoon regarding King Corn’s price break following the March 29th planting intentions/on farm stocks report that mysteriously found an additional 300 million bushels of corn lying around. New Crop Dec 19 corn settled at 384 to end March and posted new lows to 374.4 in April. But prices have rebounded some for new crop corn (387.6 settle 5/3/19) amid a record short by managed money funds (346 K) as of last week and planting delays in the Eastern and Northern grain belt. The next two weeks should tell us all we need to know if planting delays are realized and a weather rally ensues in corn and spring wheat. Watch 384 for new crop Dec corn as support with near term resistance at 391. A close over and we can rally to 4.00. July Minneapolis wheat needs a close over 525 to rally and get exciting. Under 511 and it could be new near term lows on the charts. Beans to turn and forge a bottom basis July need closes over 858 and 863 to eventually challenge major trendline resistance at 882. Support again (Major) at 840. A close under and it could get ugly. Meal major support at 2.95/96. Resistance is first at 305.7 and 310.9. Those wondering about KC vs Chicago wheat spreads should consider the following trade. (See Chart). If we close above 36 cents Kc under Chicago (July19) under next week, look for a 10 cent bounce at least on this spread to 26 to 24 cents under in the near term. I think next weeks WASDE report next Friday which will include our first look at winter wheat production may lead to those heavy short this spread to cover their positions ahead of uncertainty. Stop loss at 42 cents risking approximately 6 cents upon entry. Call me at 888 391 7894 or email me at slusk@walshtrading.com
