
Corn/Soybean Recco Update: Let’s take another look at the charts: As noted on the generic Elliot Wave chart we are likely in a 4th wave correction. I mentioned 537 a couple reports ago as a technical target for a rebound in December corn and it proved to be a barrier. We hedged a third of our new crop at 536. It could be jabbed which is why we set additional sales at 542. The chart pattern has also set up as a potential head and shoulders bottom that would project to 581 in December corn. Sell $6 Dec corn calls relative to your risk appetite. I would expect such a rally to be a spike based on a weather threat. I will change the price target for hedging the last third of expected 2023 corn production from 548 to 576. If, as expected, favorable growing conditions materialize in the latter half of June, then I would expect a major breakdown unto a summer low as the 5th wave decline unfolds. We are able to count a smaller degree 5-wave decline from the April 3 high in November soybeans (April 18 high basis July) to the recent low. This rally…