for my producers today. I had there orders right in line with my fishing lines @ 66.05. I really expected it to hit my 1st deposit target @ 65.70 and then turn around a stop us out. This move took its time finding support after I made my second deposit @ 65.25 and also changed the directional look to down. That gave me no other choice but to add to producers short positions @ 65.70. If it manages to break below 64.90 the 65.50 area will be screaming for a KISS.
Those producer hedges have stops working @ 67.05, that could happen tomorrow but if it doesn't------63.50 will be screaming louder. The obvious easy choice to be long will eventually prove correct but the TIMING is always the key element. The Obvious is never EASY-----so when the market doesn't know what to do or when the TIME is right-------it will trade a $5 sideways trade for as long as it takes to get the timing trigger RIPE. That goes for any or all of the contracts, the front could over extend to a 6-7 dollar sideways due to high volume emotion and the backs may only trade a 3-4 dollar sideways due to seasonal conviction and patience but they can also do the $5 addiction just as easily as the front month.
With that thought, I'm not interested in being long June this early for my annual cattle/hog spread. Somewhere in the 80.00 range will get my attention and I will be patient for that to happen.