Beans were sold this week prior to planting reports and along with the stock market sell off. Commercials reduced their shorts and funds remained quite long. Small specs are still carrying the bulk of the short positions. Prices look to have gone down quite enough to generate a bounce this week. To the extent that selling on Thursday was related to the financial markets, I would expect to see that reversed early in the week.
Corn was sold in response to Tuesday’s planting reports but bounced back nicely. It also pretty much ignored Greek Contagion. Commercials reduced their long positions this week, and the large funds increased theirs. The entire short position is being carried by small specs, which sets the stage for a nice rally if and when the crop gives us a scare.
Wheat had a good week, despite everything. Technically, we are now set up for a run at 580 or so basis July. I don’t expect it to be quick or easy, but a weekly close above 520 should bring 580+ before July goes off the board.
So how contagious is the Greek contagion?