Corn had a good day Tuesday, posting gains of about 2 cents. The May contract closed above the 100-day moving average and new crop December saw its highest close since February 22, also above the 100-day moving average. So, the charts look really positive going into the USDA acres and stocks report Thursday morning. That could all change depending on what the USDA says tomorrow morning. The funds are still very short corn, and I suspect they may be lightening up going into the report. From what I am reading, traders expect the USDA to report planning intentions will be at 90 million acres. A number less than that would be friendly, over 90 million bearish. The real wildcard is the stocks as it has a history of being bullish one quarter and bearish the next!

Beans had a really good day Tuesday, seeing gains of 6-7 cents. May beans closed above the 200-day moving average and new crop November closed at its highest level since October 10, 2015! So, the charts look really good for beans, too. According to the Commitment of Traders Report, the funds have gotten out of their short bean positions and actually are getting long. Traders expect acres to come in at 83 million, up from 82.7 million in 2015. March 1 stocks are expected to be at 1.55 billion bushels. Another factor helping beans and corn Tuesday was Fed Chairmen Janet Yellen's comments about the Federal Reserve being cautious about future interest rate hikes. After her comments, the Dollar Index dropped sharply.

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