Wow, these funds really came for the grains today… We have had over a 30 cent rally in Soybeans alone up 22 cents right now at 995.. We posted an early low at 961 1/2, rallied 13 cents like nothing, hesitated at 83, then smoked higher on buy stops above the recent high at 86 1/2… Funds are definitely coming like gang busters… Wheat is up 7 cents at 539 and Corn is up 3 cents at 397…It looks as if the funds bought corn last week, now they are doing the beans, and next week, most likely they will come for the wheat if this pattern keeps up… However, the world wheat stocks are so high, they might not come as strongly for it, if and when they do come…
Basically, the grains have finally de-coupled from crude.. For months and months, the beans rallied in sync with the crude oil… Not any more… Crude is down 2 bucks at the 77 level… Gold is on its trading session lows after making new highs this morning… It currently is trading at that 1111 level and holding.
This is a day where if you got stubborn trying to fade this rally, you would have gotten hammered.
On a technical note, it looks as if SF wants to definitely go up to that bear trend line I wrote about last week…the 1000 level will be resistance, but we are only 5 cents away from it now, and if it goes, the 915 to 918 area will coincide with that trend line… Look for that to be a magnet..
In the stocks, we have had choppy trade, but seem to be holding in well. My guess is that a lot of traders did the half-way back calculation, and are pondering the next move in the indexes.
Good Trading