In This Issue
July Corn Challenges Key Technical Support
Today's Precious Metals Report
Economic Reports and Expiration Notices
by Jim Wyckoff
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Early trading Wednesday saw July corn futures at the Chicago Board of Trade drop sharply, amid bearish "outside market" activity--lower crude oil and gold prices and a firmer U.S. dollar. Prices Wednesday are poised to move into the lower boundary of a well-defined two-month-old trading range, bound by the May contract high of $6.39 and the late-April "reaction low" of $5.79 1/4. If recent history repeats itself, July corn futures will find buying support with prices in the lower boundary of the aforementioned trading range. On four occasions during the past two months, July corn prices have threatened to drop below the $5.80 level, but have failed to so do. A drop and close below strong technical support at the bottom of the trading range, at $5.79 1/4 would produce significant near-term technical damage that could also be the beginning of a bearish downside "breakout" from the sideways trading range. A bearish downside breakout from the aforementioned trading range would open the door to a challenge of chart support at the March reaction low of $5.15 a bushel, basis July futures. Technical resistance for July corn is located at the overnight electronic high of $5.93, at $5.95 and then at $6.00. It would take a close in prices back above strong chart resistance at last week's high of $6.11 1/4 to provide the corn bulls with some fresh upside technical momentum. Grain traders will continue to keep one eye on the important "outside markets" crude oil, gold and the U.S. dollar. If crude oil and gold continue to sell off and the greenback continues to appreciate versus the other major currencies, then upside potential for corn, soybeans and wheat will be constrained.
Jim has an excellent daily newsletter where he reviews different markets, alerts you for potential trades and much more. Included is his great bi-weekly newsletter with charts and a little longer term outlook. We recommend checking out his website, educational CDROM, and services at Jim Wyckoff
by Tom Pawlicki, MF Global Research
Today's trade is expected to be mixed-to-positive. The gold market could potentially move down toward key support at the $890.80 level, but we tend to believe that that level will hold the downside. Any additional weakness today would likely be judged as oversold by a market that witnessed a 29,200 contract increase in the net non- commercial long position last week. We favor trading gold as a mixed affair today and would think about buying dips near $890.80.
Pressure today could potentially be seen by downside follow-through from yesterday's $17.90 selloff. Both the dollar index and stock market tested and held near lower boundaries of upward trending channel patterns. Upside follow-through is possible, which would likely weigh on gold prices.
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Source: Moore Research Center, Inc.
| Date | Reports | Expiration & Notice Dates |
|---|---|---|
| 05/29 Thu |
7:30 AM CDT - GDP-Prelim(Q1)
7:30 AM CDT - Chain Deflator-Prelim(Q1) 7:30 AM CDT - USDA Weekly Export Sales 7:30 AM CDT - Initial Claims-Weekly 9:30 AM CDT - API & DOE Energy Stats 3:30 PM CDT - Money Supply |
|
| 05/30 Fri |
7:30 AM CDT - Personal Income & Spending(Apr)
7:30 AM CDT - PCE Core Inflation(Apr) 7:30 AM CDT - Dairy Products Prices 8:45 AM CDT - Chicago PMI(May) 9:30 AM CDT - EIA Gas Storage 10:00 AM CDT - Michigan Sentiment-Rev(May) 2:00 PM CDT - Agricultural Prices |
FN: Jun 2,5,10 Yr Notes(CBT)
Jun Copper(CMX) Jun Platinum(CMX) Jun Palladium(NYM) Jun Silver(CMX) Jun Gold(CMX) Jun Natural Gas(NYM) Jun US 30 Yr Bonds(CBT) LT: May Fed Funds(CBT) Jun Heating Oil(NYM) Jun RB Gasoline(NYM) Jun Lumber Options(CME) |
| 06/02 Mon |
9:00 AM CDT - Construction Spending(Apr)
9:00 AM CDT - ISM Index(May) |
FN: Jun Heating Oil(NYM)
Jun Unleaded Gas(NYM) |
| 06/03 Tue |
9:00 AM CDT - Factory Orders
Auto & Truck Sales |
FN: Jun Heating Oil(NYM)
Jun RB Gasoine(NYM) |
| 06/04 Wed |
7:15 AM CDT - ADP Employment(May)
7:30 AM CDT - Productivity-Rev.(Q1) 9:00 AM CDT - ISM Services(May) 9:30 AM CDT - API & DOE Energy Stats |
|
| 06/05 Thu |
7:30 AM CDT - USDA Weekly Export Sales
7:30 AM CDT - Initial Claims-Weekly 9:30 AM CDT - EIA Gas Storage 3:30 PM CDT - Money Supply |
|
* Please note that the information contained in this letter is intended for clients, prospective clients, and audiences who have a basic understanding, familiarity, and interest in the futures markets.
** The material contained in this letter is of opinion only and does not guarantee any profits. These are risky markets and only risk capital should be used. Past performances are not necessarily indicative of future results.
*** 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 herein 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 judgment in trading!