Approaching Contract Highs, now what?

USDA launched the market into a familiar Fourth of July frenzy on June 30th when they reported final planted acres of soybeans fewer than expected. That’s all we needed to attract the Spec Funds to the long side of the market and we are currently seeing the effect.

Expect most contracts to test contract recent highs, 399 in the Sep corn, 409 (then 420) in the Dec corn, August soybeans will follow the direction of the November contract, target 1030 there and 590 in the Sep wheat.

These market conditions do not last long, be prepared to price into this strength.