Markets Wednesday Explode Higher

We have been waiting for a corn rally since last fall. There was no post harvest rally this year which was unusual. Corn has been stuck in a fairly narrow range since last fall, well, at least until this week! Corn has been grinding higher lately being helped by the bean rally. Wednesday corn exploded higher posting gains of 10 to 12 cents. Plus, corn closed over the 100 day moving average. All we have heard since last fall is how ideal the weather is in South America. Finally there is talk that maybe isn't perfect. Brazil has just planted their second crop corn and it is getting a little dry. The funds were very short so I am sure there was some short covering that really helped with the rally.

Beans have seen a nice rally the last week and exploded higher Wednesday posting gains of 15 to 20 cents. There was a news story out Wednesday that maybe the yields in Brazil were more variable that expectations. On top of that heavy rains are in the forecast for Argentina that is causing some concern with harvest. There was also an economic report out of China that showed their economy is improving. Traders took that to mean China will import more grains from the United States. I am not sure how far this rally can run? I guess that will depend on the weather, but is sure has been fun so far!