June 4th Update

Published on: 10:44AM Jun 04, 2011

Corn saw the funds expand their long positions and prices moved up usefully. Open intnerest increased as well. All eyes are on the weather and on plantings.

In wheat, commercials released some of their few longs while farmers increased their shorts. I trust this means that $9 wheat is a decent profit for many & I hope the crops come in properly to fill the hedges. The funds, who are carrying the bulk of the long positions, expanded their longs. Price action can only be described as disappointing. We remain in a sideways market.

Beans saw a second week of funds expanding their longs along with a third week of higher prices.While it is by no means a done deal, November beans are looking like they want to go to 1565 or higher. A weekly close above 1420 will make that a high probability event.