Thursday exports brought no curve balls and we are just trying to find an area to settle into. Funds are huge short wheat and can keep a lid on that crop until they flinch, but I struggle to see the money in any push down from here. 604 1/2, minus 2. Corn up another 3 1/2 providing a solid recovery this week from fund driven shorts, 590 3/4. Ethanol still profitable and providing a domestic bid. Soy off 1/2 cent at the end, 1324. Rice closes 1660, minus 1 1/2. Open interest has several new players adding short July long Sept spreads and lots of talk that they have to converge. Fair warning, they don't have to converge. I don't know who put that story out there or who is spreading it, but there is a bunch more risk than the surface shows. Personal note, I believe my biggest loss in over 30 years of futures trade was that spread. It could close 50 cents or 5 bucks. Or both. Most have no business with anything related to July rice in their accounts right now. End of rant, but please take note.
Leave a Reply.