The activity was rather benign leading up to the report.  For the first time ever soybean open interest has climbed over 1 million contacts.  In the past the peak to the fund position has occurred well before the top to the market has been scored. 

 

It will be prudent to monitor the weekly trends by the funds as the market searches for a top.  Wednesday’s report emphasized the lack of rationing that is taking place in the corn market, so it will continue to work to find a level where that will take place. 

 

The late week break in the soybeans was tied to stronger South American production ideas as well as Chinese cancellations of US soybean imports.  Look for temporary highs in corn to be in place by mid-week before a correction begins.