The price action in wheat has been terrible for the bulls. Since the WADSE, July prices have come down nearly $2 and December prices have come down about $2.25. As of Tuesday last, the commercials were in sole possession of the longs, holding them at levels last seen in the last two weeks of last November. Similar, and higher levels were held last summer. In both instances prices moved up $2 or so. And, for what it is worth, December prices are camped out on the normal move target, right at $7. I’m not so bold as to assert that prices will go up from this moment on, into December, but I’m certainly of the opinion that the next big swing is up.
There has been blood spilled in the bean market as well, with prices of both July and November down about $1. Commercials were at their shortest of the past three months going into the WADSE, but nowhere nearly as short as they were in January and February. It seems that beans are going along for the ride.
Who is driving? Corn, as everyone knows, is driving. The two largest corn producers are the