Rebound today across the board in row crop. Weather is sited as the reason. Perhaps the rains this weekend will be insufficient. It is possible. The Argentinian soy crop would need to decline to such a extent to hurt the global carry. It truly makes little sense. many private analysts are pointing to a crop of 114-115 mmt in Brazil. The USDA is currently at 110. This makes up for the Argentinian situation. I am not a bull. this does not mean the funds wont buy. They probably will push us higher through the crop report. Use this rally as a opportunity. Hedgers pick your spots. In both old and new.
The corn moved forward today. Funds continue to exit short positions. The USDA is expected to show a further draw in both global stocks, and the USDA domestic numbers. This could push corn before the report approx. 8-10 cents higher. If this rally transpires take advantage of it. With Dec at 402-406 take advatage of the price and implement your hedge program. The corn carry will continue to decline globally. This offers support. In addition the funds still are short a very healthy amount. It is my contention that ultimately thiswill force the market hugher