May 21

Published on: 12:52PM May 21, 2011

The corn CoT report shows the big forces moving toward neutral: funds sold longs, commercials covered shorts. The price action is constructive, though not a full monty bull market.

The CoTs for beans are also moving towards neutral. Open interest is the lowest it has been since September, indicating lack of clarity in future events. Does it strike you strange that some folks don’t see the future clearly? I am always mystified when someone sees it clearly. The constant in life is change, including the ultimate change, moving out of life.

Wheat, my final victim for the day, has the commercials suddenly taking a noticeable long position. Farmers and small specs are carrying most of the shorts, and, for a change, the funds are the tail rather than the dog, with small short positions. I think the price action in wheat looks constructive. Beans, on the other hand, look like they would go down if the could, but are being kept from sinking by corn and wheat.

Lots of folks have had problems getting seeds into the ground. Mostly, it has been muddy. But other places have been dry as a dried up lake bed. A few have wonderful conditions.

The only thing I hear out of China and Russia sounds like continuing problems. Doesn’t sound like bumper wheat crops from those two – or even good crops, but we shall see.