|
| Supposedly the funds bot 90 mil today. Open interest declined on yesterday's action. In terms of hedging, depends whether the user has swaps or will hedge inventory...most hedge liquidation is by futures exchange & is a non-event pricewise. In my opinion, we are in the midst of an acreage battle already....the demand leg of DDGS is going to provide a great deal of support but take away from meal demand...I believe & have felt this way for awhile..that we are on the verge of a new era in soybean-corn price ratio. Quite frankly, ddgs demand is rising more rapidly than any other element in the equation...almost to the extent, if the industry 'grows up'...ethanol cud occasionally be the byproduct. A lot of variables at the moment and thinking we've squeezed quite a few of the shorts dry...but hopefully there is a new supply....selected crop areas of China still appear to be nippy cool between tomorrow night & Saturday AM. Folks are getting a little too bullish in my opinion.....I liquidated 1/2 of my position last night and do not want to be long soybeans. | |
|
Market Fundamentals and or verses market Funds
