Friday

Dull Friday trade in the grain room but a few things to note.  Corn up 1 1/2 to 445 1/2 and open interest up 23K more so I'd expect the fund short to be getting near capacity.  Fund short 260K as of Tuesday close and wouldn't be surprised if its near 290K now.  Thats a lot of confidence in a South American corn crop that isn't even planted.  Beans off 1/4 after an early run up faded, 1213 1/4.  I struggle to bully soy oil more down here and there was a big pop in Friday oil open interest, while meal OI dropped in the break.  $3 carry in the May/July meal (I hated K/N spreads when I was on the floor in the meal pit) is expected but no carry anywhere else doesn't give the funds a platform to aggressively short meal and their huge, long position is now unwound to a small short.   I have the bean short position near 90K now and wonder how much new money is willing to commit to a short at the lows.  Wheat bounced 7 3/4 to 593 1/4 and it really doesn't like it much below 6 bucks.  Doesn't seem to like it much above 6 bucks either.  Dow ramped up 386 points to new highs, 38,045, because the economy is so perfect?  Bonds up 3 tics, 120 even.  I'll be shocked if we are still here in a week.