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South Central Iowa | I did make passing reference, thanks for noticing. Little offended for the first few sentences, lol.
I was also surprised no one mentioned the corn reversal. I usually get more caught up in my lines and don't notice that as quickly as others. And I didn't notice it quick at all. The recovery day on Friday was 400,000 contracts vs the 600,000 on the prior days. Price is definitely negative with volume.
We are really close to pivot points too. Last week low $3.81'6 is there, but then, very importantly, is $3.74'0. That is the June low and annual low. Two spring downswings struck $3.74'2 and $3.74'4 as well, so there is value in that area. Take that out and there is the contract low at $3.58'4 and then air.
Two days like last week and we are broken. I have a hard time believing that the buyers are going to want to step back in. We had a build in June that was violently taken down. Now we have had a second on in July that has been ripped apart. There is less resistance to the down and those who have bought have not been rewarded.
Just to look at it from a different perspective, I have been reading that the down flush is to shake off weak longs. What if the upswing was merely to squeeze weak shorts? I don't particularly buy into either "squeeze", but one could look at it either way.
Edited by Conan the Farmer 7/16/2017 10:19
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Row Crops
