USDA did not disappoint Tuesday. Feature was tighter stocks both domestic and global in corn with a 517 1/4, limit 25 higher close. Synthetics worth at least a dime more. 39K pop in corn OI split between old crop and new. Wheat up 30 1/4 to 665 on the back of corn and talk of Russia increasing export taxes again. Meal up $19 and beans pop 45 3/4 to 1418 1/4. CO down to 140 and I can pencil it a lot lower in the future do to exports. The bean rally was without a big pop in OI, but rather the short stuck and paying up. Rice up 26 1/2 to 1284 1/2 with LG Carry over dropping back to 26 and change, right on my working 27 number. It does allow the USDA to pull back in domestic and residual in the future. I wish they would have dropped carry in. Dow closes up 72 points, 30,974, up 200 points from the low. Seeing the trend? I would caution that once a trend becomes obvious it generally stops working, at least long enough to take your money. Bonds close 5 tics lower, 168.06 after putting a new 167.11 intra-day low in and pivoting. Probably enough for now in this wave.
Comments are closed.