We had a screaming rally overnight led by the Soybeans…November contract was strong, rallying and settling ten cents higher, corn and wheat followed with corn up 3 cents and wheat up 7…
Bullish factors are 1) the weather forecasting more cold and wet over this week, which could further delay harvest and 2) higher moisture content in some of the corn which as been recently harvested which may impact quality and yield.. At this point the trade is looking for anything bullish and running with it.
Today being the 19th, the trade was anticipating index funds liquidating longs in corn and wheat and spreading that against buys in the beans… This could be a factor where traders get punished, short term, for being right longer term.. Traders who initiated shorts in an attempt to ride this wave in a short term profit may be punished for their aggressiveness..
In the stock indexes, it looks like we’re off to the races higher in anticipation of better earnings this week. I still think 10,250 is a good target for Dow Cash and certainly 1100 looks attainable in the SP500… The October surprise did not materialize, YET, so traders may look to jump on board for a year ending rally…
I will have an end of day update, but in the grains, I would look to buy beans on dips… There is still a chance we will break hard and go fill the gap in SX down around 968 sometime… We have been in a 30 cent trading range for a while, so look at those extremes, with the old high around 912 -913.. If that pops to the upside, 930 level should be looked at this week.
Good Trading