The Wild & Wooly Grains & Cattle
Presented by Heartland Investor Capital Management Inc. CTA
Corn:
Heavy fund liquidation continues to pressure prices.
July corn tested major support near previous October and January lows.
December corn is approaching strong support in the 440 area.
Export demand remains exceptionally strong.
Potential weather scares and Chinese buying remain upside catalysts.
June 30 acreage report remains a key market driver.
Soybeans:
November beans broke below the 35 day moving average.
Technical breakdown accelerated selling pressure.
Major support sits near the 200 day moving average around 11.20.
China remains absent from the market despite purchase commitments.
Any surprise Chinese buying could quickly alter sentiment.
Kansas City Wheat:
Market has fallen roughly $1.35 from recent highs.
Overnight lows held despite continued weakness in corn and soybeans.
Recovered back toward the 100 day moving average.
A Friday close above the 100 day moving average would improve the technical outlook.
Analyst believes downside momentum is becoming exhausted.
Chicago Wheat:
Trading near major measured move downside targets.
Technical indicators suggest an extreme oversold condition.
Global wheat fundamentals remain supportive.
Production concerns persist in parts of Europe, Australia, Brazil, and Argentina.
Potential exists for a 15 to 20 cent recovery rally.
Risk management remains tight with nearby stop levels.
Minneapolis Wheat:
Reached key support near the 200 day moving average.
Recent Northern Plains rainfall remains a bearish factor.
Expected bounce targets the 6.60 area.
Producer selling opportunities may emerge on rallies.
China:
Delayed agricultural purchases have disappointed speculative funds.
Eventually expected to fulfill previously discussed purchase commitments.
May be quietly accumulating positions during current weakness.
Could become more active ahead of the June 30 acreage report.
Weather:
Forecasts have improved in the short term.
Market aggressively removed weather premium.
Long range forecasts remain highly uncertain.
Summer heat and dryness concerns could quickly return.
Live Cattle:
Sharp recovery after screwworm concerns triggered heavy selling.
Produced a bullish outside day reversal.
Technical action suggests a significant low may have formed.
Consumer demand remains the primary long term focus.
Feeder Cattle:
Limit up recovery highlighted strong buying interest.
Bullish reversal pattern remains intact.
Technical targets suggest potential recovery toward the 360 to 365 area.
Screwworm headlines may create volatility but likely lose market impact over time.
Market Outlook:
Markets appear oversold following aggressive algorithmic and fund driven liquidation.
Technical support levels are being tested across grain markets.
China, weather, and acreage uncertainty remain the primary bullish catalysts heading into late June.
Provided by:
Eugene Graner,
Heartland Investor Capitol Management, Inc., CTA
(A separate entity from Heartland Investor Services)
Past performance is not indicative of future results. The information contained in this report is intended for informational purposes only and is the opinion of the writer and may change at any time. This information was compiled from sources believed to be reliable to Heartland Investor Capital Management, Inc. but accuracy cannot be and is not guaranteed. There is no warranty, expressed or implied, in regards to this information for any particular purpose. There is SIGNIFICANT RISK of LOSS involved in trading futures and / or options on futures and may not be suitable for all investors. Investors should consider these RISKS and evaluate their suitability based on their financial conditions. No one should ever consider trading futures or options on futures with anything other than RISK CAPITAL. NO LIABILITY on the part of the author exists for any trading loss you may incur in the use of this information. The information contained in this newsletter is privileged, confidential and protected from disclosure. Any further disclosure or use, distribution, dissemination or copying of this message or any attachment is strictly prohibited. Provided by Heartland Investor Capital Management, Inc. a registered CTA with the NFA, of which Eugene Graner is principal. This entity is a separate legal entity from the Introducing Broker Heartland Investor Services.