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Senior Contributor

OptionEye......July 25th

Good morning.


Corn weak again. Beans getting hit hard.


Corn is off 31% and beans are off 12% for the year. Pretty ugly year so far. I guess we are blaming it on cooler weather and end users that have backed away from bids waiting for better prices. Well, so far so good.


Huge interest in the downside puts again yesterday shows that speculators and institutions are looking for more movement towards $4.00 in Dec corn.


For the first time in a few weeks we also saw a lot of call selling in Dec corn options to go with the put buying. Maybe we are seeing a little capitulation with some bulls getting out all together. There were some call purchases to note but mostly investors who were long calls rolling down their positions.


As for the economy, stocks lower on what I think was benign news so the taper caper continues. Crude trading lower today as well by $1.00 to $104.40. The bonds are also selling off telling us that rates want to go higher. The 10 year yield is pushing 2.60%.


The dollar is weaker which could help commodities today. We shall see..



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