Grains finished mostly higher with wheat leading the way again. March soybeans finished up 9 ¼ cents at $12.22 ¾, March corn unchanged at $6.34 ½, and March wheat up 12 ¼ cents at $6.53 ½.
Wheat continues to lead the grain markets. Open interest has actually been RISING in the Chicago wheat contracts since Monday. This is surprising given the huge swings in the spreads and the fact that we know the managed money was massively short coming into this week. We think the wheat has a potential to continue to move higher on short covering and there is not much incentive to be short front month Chicago wheat.
Although it was difficult for corn to hold its highs today, the strength in wheat is certainly helping corn stay supported. Corn has had a lot of hype lately. We got a price break after the report which led to less producer selling. This was followed by stronger cash bids and some export business while the price was lower. Today we reached the $6.50 cash level again in many areas and likely had a lot of cash sales contracted. I think we will stay in the range between today’s highs and last week’s lows for the near term as producer selling steps up again.
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