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central ontario | A lot of what Sat is saying is valid most of the time,these funds could still move around in here with their length in positions and still push things BUT the only way we rally is with the weather supporting this market,June acres report could put things into perspective for corn and soy stocks just do not seem as large for corn and soy as was just 3 months ago,Brazil still seems to baffle me with having too import feed stocks after having a good crop last year not so this year ,production on the 2016 crop keeps dropping and opening the window for more exports out of the US.
The funds have not sold much considering the down move on futures is it because the commercial entities are backing away and holding out their hands and catching the fallout from the sell off,they certainly would benefit,have the funds actually traded the down turn by selling each day and buying back each day with the idea we may stabilize prices.
The heat in the grain belt certainly is a different factor too consider for the final out come on yields even though noaa is calling for some relief from heat and trying too bring in more rain,I must say in general they have missed the rain amounts looking out,more then they should.
If the heat comes back over a big enough area as we have just come through the money will push things again,heat alone has been having a real draw down on moisture in some of the areas in the heart of the grain belt.
The funds still own a huge long in the grain complex,the fundamentals do not seem as bearish as last winter,but their ownership will to be dealt with at some point,Brexit may not be as big a deal as was Friday when fear hit the market,on a world scale,the Brits make up a very small portion of the economy.
I have a positive bias because we are very dry here,PS Sat could you send that rain over here for Ontario,Pete needs it also.
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Will the funds still flee?
