Markets Thursday, Wow!

When the Federal Reserve raised interest rates Wednesday afternoon, the Dollar Index began to move lower. That was reversed in the overnight trade, putting the grains under pressure. It was discouraging to see corn down another 6-8 cents as the Dollar Index was sharply higher during the day session Thursday. Then about mid-morning everything reversed and grains began to rally. Corn actually closed 4-6 cents higher. I did not see that coming! I did read that there was "strong commercial buying" that helped fuel the rally. The key is going to be can we follow through today and see a good weekly close?

Once again it was a similar story in beans. Beans were under pressure from the higher Dollar Index and Argentina devaluing their currency the peso. Beans saw a bullish key reversal on the charts. We also had another strong export sales week at 1,023,800 MT along with another sale of 424,000 MT of beans sold to China. It will be important for beans to follow through today too. Recently we have had many one day rallies only to be crushed the next day!