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South Central Iowa | Fundamentally, I think that the trade is a buyer of the exports and another USDA underestimation of demand. I think they are a seller on a 6 million acre switch. I think they don't believe Brazil will have the 107+mmt crop and that along with Argentina drop, it will leave the balance sheet the same. We did have a global drop of 1.5mmt too. Then just as a feeling, I think there is a portion of the trade who doesn't want to miss out like last year and is playing the odds that every year without a weather disruption increases the chances the following year; the "it's due" mentality probably plays a little in.
This has been a very technical driven rally though. Really it has been since the rally off the September low. Spill over support from post election money flow has helped as well; just the general enthusiasm that we have seen in all markets is also playing a role. I know Frytown was saying below that if we weren't in the low $10's by the end of the week, he was going to start getting bulled up; so the pitchforks are favorable. The price-action tools I use point us up in an uptrend for now as well. I know some of the wave people were talking a couple weeks ago about running up into the $11's. So there are several different technical chart techniques point up. I don't know about the indicators, but I am sure they will tell us tomorrow what happened today..... Lol
Edit: They are a seller on the acre switch as in they don't believe it occurs in the massive 6 million acre fashion some are calling for. Didn't notice your corn part IN; corn is probably doomed to follow for this year, but it is much safer and reliable in its direction, range, and capabilities; unlike the whipsaw that is soybeans.
Edited by Conan the Farmer 2/9/2017 13:24
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WASDE!!!
