On the Grains Yesterday, we held support for the March corn, which we mentioned in the morning report, a good sign for corn. Also, we did see a USDA flash sale of corn to Mexico of 139,000 MT. Until we can get a wheat move, corn looks to be range bound. Russian wheat has slowly crept its way higher in the international markets, yet Paris Milling wheat put a low in yesterday. What gives? We know the Russian crop went into the ground in rough shape and most likely won’t improve, yet the US futures refuse to do anything with that news. Since that story has some traction, back at the start of October, futures have fallen from $6.03 down to $5.36 vs the Chicago contract. The funds are still short, and it appears that they are not in any hurry to cover. I know hardly anybody who is reading this report grows much wheat, but without a move to cover those shorts, corn is going to have limited upside. It’s possible that the funds will decide to cover some of those shorts when the US crop comes out of dormancy, but that’s down the road. This content is for…
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