Day 3 of the hedge fund commodity liquidation as overnight strength and a classic turn-around-Tuesday trade didn't materialize. The weather next week is starting to gain some traction as almost everyone sees a ridge of hot air settling in on the Midwest. With very little drought areas, a week of 80-90 degrees should be withstood fairly easily. If for some reason the anticipated high pressure ridge persists beyond next week, a strong case could be made for volatile trade the rest of June. Today, it is estimated the funds sold another 6-7,000 contracts of corn, note this is much lighter than last Friday or yesterday.
Corn and Soybean basis continues to remain strong as the pipeline looks to get stocks and fight a lower futures market. New crop corn and bean basis is also tightening and should be closely watch and locked in if desirable levels are seen.
Dow dn 107 points to 8504
Crude Oil dn $.36 to $70.26
Scott Meyer
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