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| Sometime next week I suspect we will do some sorting of longs and shorts & see who really wants to be in this market. One week from tomorrow we will have the pleasure of viewing the stocks report, crop production and the wheat seedings before the opening of the day session. Potential stocks are tight enough it won’t take much of a decrease or increase to run some shorts in or watch longs all try to race out through the gate in the opening minute like hobos after free ham sandwiches.
Same with corn & soybeans as we will confirm 1st quarter usage.
I say this, as we’re building open interest fast; I am told between $30 & $50 billion in new index money is coming into commodities and agriculture will get a decent share. Hopefully, some cash will remain this next Friday to support these markets if we get any surprise.
Speaking of chaff, I stopped out of my march feeders…owned them less than 3 days…loss equals about 3 to 1 of the corn contracts (takes 3 corn to match each FC loss) I bought the other night..then someone should ask the intelligent question, which I did not ask myself, why would I not liquidate my march feeders when I bought corn….doesn’t make sense to own both. Just plain careless. 3 is not my number today.
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Wheat & Chaff
