June 30 USDA, Recession Test, Drought premium gone

Top 3 – Things to Watch this week:

1. June 30 USDA Report which is about acreage and ending stocks. Important because it give a final number of USA acres planted.

2. Commodities are starting to get a “recession test”. This means that the bullish news that has been pushing commodities to new highs maybe shifting or at least not providing reasons to go higher.

3. Production issues have been alleviated in the past few weeks. The market knows that we are going to get a crop so the “short fall” premium is now gone.

This week’s Action Item:

Since everyone should be getting some crop now is the time to evaluate your cash flow needs for the fall. Time to get caught up on pre pricing and put in targets. Volatility is likely to remain for the coming months so targets are an excellent way to capture the rally.