Tuesday

Tuesday trade firm across the Ag room again with beans leading the way, 1566 3/4, up 39 3/4 more.  Beans at least gained some Open interest, so we do have new buyers at the dance.  660 corn was up 26 1/2, but that was with a decreasing open interest.  Same in wheat, up 12 1/4 to 782 3/4.  I would remind you that bulls need fed every day, and there appears to be not much of that in this corn and wheat rally.   Crop tour is throwing out some pretty bullish yields, which is running off shorts, but my fear is at some point soon the actual combines will be creating sellers.  Rice up 16 1/2 to 1729 and $8 cash new crop is trading.  Deep in the money Sept options looked to have rolled up to 1680 so 1680 and $17 could make for some interesting pins on Friday if a big player wanted to trap someone less savvy.  Dow off another 155 points, 32,901, and bonds looked higher but couldn't , ending off 13 tics, 137.16.  Bonds are hinting to me that behind the scenes at Jackson Hole the real topic will be unwinding the FED balance sheet smoothly, not short term rates.