Report behind, China ahead.
Feeble exports to start friday action, followed by bearish WASDE reports in corn and beans. Corn broke, but came all the way back and closed 2 1/2 higher, 385 3/4. Same story for beans, ending the day at 946, plus 2 1/2. Wheat story was neutral/solid to me, and the market as well, 564 1/2, up 2 1/4. Rice got the most bullish story that has been printed by the USDA in years, but could only muster a 5 1/2 cent rally, 1333. Tale of the tape came out after the close when commitments showed the funds long over 4800!!! contracts. Kind of hard to keep firing bullets when you are at pretty much a record long already. What the market showed us friday is that rice will be in short supply until new crop arrives 8 months from now, and in the other grains, the market does not believe the USDA. Also, I'd say its a fair bet this deal with china gets signed. Dow sets back 152 to 28,777 and bonds pick up 26 more tics, 157.20. Big churn to nowhere in the bonds this week. Still a big short in the corn.
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