While Class III rebounded, Class IV continued to sink on offers alone. No trades occurred, to be clear, but prices fell anywhere from 4 to 23 cents.
In the grain complex…. up, up and then a rally got trampled by a mad cow stampede. July went from about 9 higher to close four and a half lower- the power of fear and greed, the power of a scare. The U.S. dollar has been soft and Chinese buying has propelled both corn and beans. The bear is at least napping; the bullish longer-term trends have overtaken short-term bear chart challenges and while not completely negated yet, the bear is certainly napping. If we sell rallies in milk, we must also buy dips in corn or at least buy calls -- something to protect what could get/stay wild.
We look for corn to open 2 to 5 cents higher and for beans to open 18 to 24 higher.
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