Those of you who trade grains will already be well aware of how busy I am right now but I will get some comments up on the grain reports this afternoon when I get some time. Needless to say, there has been a bloodbath among the shorts as some big specs went after the short interest.
Both corn and beans are showing a larger percentage of the crops have been harvested than the pre-report estimates which may lead to some selling this evening/afternoon on the open.
If you ask me why these things are rallying like they are, I have no explanation. All I can say at this point is that some very big specs went after the short interest and used the recent low pressure weather system that went through the Corn belt yesterday and Tuesday as an excuse.
I have not seen any reports of any major crop damage thus the entire rally looks to me to have been a series of upside buy stops that cascaded and set off the computers buying.
This is why I constantly make mention of the nature of today's markets when dealing with those in the gold bug community who blame every single move lower in gold as part of some orchestrated plot on the part of the "evil bullion banks - backed by the feds" to take it down. Those who advocate such foolishness have never seen what some of these big specs can to do a market.
"When misguided public opinion honors what is despicable and despises what is honorable, punishes virtue and rewards vice, encourages what is harmful and discourages what is useful, applauds falsehood and smothers truth under indifference or insult, a nation turns its back on progress and can be restored only by the terrible lessons of catastrophe." … Frederic Bastiat
Evil talks about tolerance only when it’s weak. When it gains the upper hand, its vanity always requires the destruction of the good and the innocent, because the example of good and innocent lives is an ongoing witness against it. So it always has been. So it always will be. And America has no special immunity to becoming an enemy of its own founding beliefs about human freedom, human dignity, the limited power of the state, and the sovereignty of God. – Archbishop Chaput
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