Cross-Pollination
Grains are up sharply on deteriorating weather forecasts during the critical pollination period.
Corn pollination is severely retarded compared to prior years and to the five-year moving average. Only 6% — and as little as 1% — of corn has pollinated: the average pollination rate at this stage of growth should be 20% or higher.
Corn gapped higher from the 50% retracement area (pointed out as potential support in yesterday’s commentary), leaving what should now act as firm support at the gap in the 219 1/2 to 222 area.
The USDA also downgraded the corn crop condition, reporting that only 65% of the crop was in “good to excellent†condition.
In addition, China a major producer, said its crop was down nearly 5% from last year as their growing regions endure a drought.
Beans are also rallying on the weather forecast with bean oil
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PowerRating) leading the way. Back-month Malaysian palm oil futures surged overnight, giving extra impetus to the complex’s weather-rally in Access trading. Bean oil is the leading contract on the Momentum-5 List, and soybeans are in the number two slot.
Cotton is following through on its Turtle Soup Buy Reversal from yesterday with a Turtle Soup Plus One Buy signal from today, up .53 at 41.87 off the multi-year low struck yesterday.
10-year notes
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PowerRating) are moving higher, for a seventh gain in eight sessions, making good on their Momentum-5 List reading.
In the metals, copper
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PowerRating) is higher for a second consecutive day out of its Turtle Soup Plus One Buy reversal pattern, up 1%, or .95, at 71.90.