March 16, 2009

The soybean complex was the leader today with some impressive rallies as money flowed back into commodities. There seemed to be some discussion today about fresh Chinese demand as well as a labor situation developing in Argentina the fact however is that today’s rally was all about money flowing into commodities as funds were reported to be in for 5,000 contracts on the day. There was a pickup in hedge selling from U.S. producers but this didn't seem to lend too much pressure to the market, surprising since we were up $.40 at one point and producer selling should pick up at some point both in U.S. and South America. For the record export inspections came in at a rather disappointing 22.4mil.bu. Let's see if the influx of fund money continues over the next few days...

Phil Farrell