Rumors of the USDA reducing corn production have got us off of our lows. A decent rally yesterday was followed by some good gains overnight. Maybe this will be enough to squeeze those shorts out. They have been the stronger hand as of late. Crop progress yesterday afternoon was mildly supportive as it is very clear we are definitely behind.
Soybeans jumping again overnight as stories do the rounds about South American port and farmer strikes making it difficult for China to fulfill their needs. Wheat has followed as well.
With the USDA report on Thursday we will start to get an even clearer picture to what up until now has been very blurred. The crop is late. It has been cool and wet slowing developments. I would agree that Chicago has been complacent. It is hard to fight the trend but it has been frustrating.
As for the rest of the world, earnings are beginning to come in and they will give us a real look as to what revenues are really doing out there. Expectations are for reports to be sloppy. It's really not about earnings or earnings per share, we need to see how much these corporations are really pulling in revenue wise. That is going to be the most important driver going forward.
Gold is up $12.00 to $1250, the 10 year yield is back down to 2.63% and the dollar continues its march higher.