07-10-2013 07:24 AM
Well it happens when you least expect it. The strong hand as of late has been the short and they have been adding to positions over the last few weeks. But, never fear, Mother Nature is here and as of noon yesterday, the markets saw a bloodbath of short covering that drove us much higher.
This morning corn is called another 3 to 4 higher, beans up 2 to 5 and wheat 1 to 3 higher all on decent overnight volume.
Reports that this was short covering going into the report I think are not correct. Maybe the first 5 cents in corn was a short cover for tomorrow but the next 15 cents were dominated by brokers running around covering shorts for funds like they had their hair on fire. We bounced pretty well off of those lows so I think they are here to stay in the short term. I have read that some think that the USDA will put out this fire but they will need to also corral mother nature to put a damper on things.
Stocks are a little easier in front of the release of the Fed minutes this afternoon. Gold is up $5.00 at $1257. The 10 year yield is at 2.62% which is not much changed from the level going home last night. We are now in the midst of earnings reports which I think should be renamed 'Revenue' reports as that will be the key driver going forward. As I have said before, you only can cut so much to profitability.
Again, this grain market should get fairly skittish after this move going into tomorrows release.
07-10-2013 08:31 AM
Scott, A good report this morning. Thanks. The USDA can't corral mother nature. But it seems like every prediction they throw out there it seems they are trying to calm the fears of a low, low grain supply. There seems to be no end to this. Many think time after time, that they will "get it right" on the next prediction.......but they continue to kick the can down the road.
07-10-2013 09:47 PM - edited 07-10-2013 09:48 PM
.......just when you think you've read and heard peak lunacy ---------"the strong hand as of late has been the short" ????????????????????????????????????? -----boys and lady, there just might be a clue here!! ............if that's what pits think? what do you think???