BUYING OPPORTUNITY........ Monday to Wednesday brought more than ample pre-crop report buying with a Friday low to Wednesday high rally on corn of $.65, beans $.45 and wheat $.60. The size of the rally to some was too much too soon but reality is it makes sense as last weeks low was oversold on month-end profit-taking by funds. So the new month began with short covering and new long buying. Buying comes as traders continue to buy in anticipation of next Thursday's USDA monthly crop report expected to show potentially a sharply lower yield in corn and to lesser extent in beans , after July was one of the hottest on record and severely dry in most areas. But each day we trade, whatever the next weather report says. WXRISK.COM the weather site sees rain across the Western grain belt today through Saturday then again to start the new week into Wednesday, possibly larger rain totals in the Eastern grain belt with no real returned to high heat in the 14 day Outlook. This looks to generally limit strength, but expect next weeks crop report to dominate trading with higher prices into its release and traders buying weather breaks. After a strong start to the week, Thursday, today brought heavy profit-taking on two issues. One, a wetter cooler forecast near-term and two large funds selling everything from cattle, corn, gold, crude oil to sugar. Once or twice a month large funds sell everything they own on their portfolios and or buy and add to their book. With livestock, grains and metals prices way up on the charts they used bad Europeanfinancial newsto go to the bank with profits today. Look for grains to recover today's losses that were a great buying opportunity ahead of next weeks big report. On my next report Tuesday, we will give the pre-report trade estimates on next weeks report that gives us a look at what the brokerage industry is thinking the report will say and look at option strategies going into the report. November beans support now lies at 13.35 and resistance 14.10. September wheat support is 6.70. Resistance 7.16. December corn support is 6.84. Resistance 7.14 then 7.22.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.