Markets Change Direction Around 4th of July?
There is a perception that many times markets change direction around the 4th of July. This is a rather unusual week with the 4th of July right in the middle of the week on a Wednesday. It is a fact that many times corn and beans do change direction but it is not exactly because of the 4th of July. It is really because of a couple of a couple big USDA reports that are released at the end of June, the acres and the stocks reports. However this year the stocks and acres reports were as expected.
The corn and bean stocks came in almost exactly as traders expected. The much anticipated acres report did not really provide a surprise either. Corn acres were a million higher than the March USDA Perspective Plantings Report and the soybeans about 600,000 acres higher. None of these numbers provided any "fireworks" Friday after the release at 11:00 am.
So, where do we go from here? It is hard to believe there is a lot of downside left after the big sell off in June. It is also hard to believe that this years corn and bean crop will live up to the lofty yields being projected by the crop condition ratings. However, if I knew for sure I guess I would not have to get up every day at 3:15.