r e l a t i v e // strength

markets monday, july 3, 2006

I've read on multiple trading sites that Monday's action could well mean little to nothing in the bigger picture of things. Reason being that trading volume is historically low when you have a day sandwiched between the weekend and a holiday.

• Corn: moisture again missed or had very light coverage in the Iowa area of the grain belt.
• Beans: a solid rally Sunday night that carried forward Friday's bump higher may run into short term resistence, so watch for hesitation or a set back. If weather watchers continue to see spotty moisture, then the bean traders will factor in weather premium--quickly!
• Cotton: bearish numbers didn't seem to break the market on the downside. The December contract may be clammoring for support.
• Gold: Sunday night was able to maintain its gains and add a little more through the night.

Monday may not mean too much in the bigger picture. Be on the lookout, however, if we have a reasonably hot and dry 6-10 day forecast when trade resumes on Wednesday then the grain markets will be itching to move a leg higher. Right now there is a lot of potential energy.

posted by jared @ 4:38 AM