Sentiment is bullish pre-number.
Every producer I speak to is not concerned about lower prices. Typically, with CZ near 8-month highs, SX holding near 10-month highs and WN at a 10-month high, who could blame them.
With the funds long and with sentiment cautiously bullish, this might be a good time to head the opposite of the herd.
A July Corn 5.00 put for 10 cents a bushel is a good risk reward for the next 42 days.
A WN wheat 720 put for 20 cents a bushel is a good risk reward.
A SN bean 1400 put for 13 cents or a 14.30 puts for 20 cents are both good ways to get short in front of this number with out running the risk of getting stopped out on futures, or worse, getting lulled into staying short if we have another grinding slow rally like we had from the January lows.
We’ll see where these settle tomorrow at 1:15.
As for the stock indexes, once again, folks are desperately trying to call the top. I don’t think that happens until we get a blow off capitulation rally which sucks out all of the weak bears. That means SPM needs go get that 1900 print, and DJM needs to get closer to a 17000 print.
CER