I heard from the floor some fund is bailing on a long corn / short wheat. Just a rumor, take it for what its worth.
corn is deffinantly going higher. We are at a point where the crop is huge, demand has been lax and it has became the tail of the dog in the grains. I mean come on you get wheat up limit beans up 9 and corn still down a '4......thats just retarded. This is all factored into the market now. The trade is getting used to trading this huge crop and not the small troubled crop earlier in the year. Demand will explode after harvest and we will have lots of corn ready to be sold. The ethanol plants arn't morons they are trying to get this stuff bought dirt cheap and what better time than at harvest. Around 330 and we get people coming into buy this stuff up. Now 370 is going to be extremely tough to break but I believe we will sometime soon after harvest.
Not sure we've found the bottom yet. When farmers in TX who normally plant cotton are getting 200 bushels an acre . . . there's a lot of corn out there. The states to watch tho are IA and IL, then NE and MN. Next year will be a different story. Corn will not get the acres they had this year. Wheat and beans will look more attractive for producers and it's too hard to do corn on corn. The question is: when do you go long Dec 08?