Market Report: Corn and Beans Higher

What a day. Corn closed up 6-7 cents. With the bearish attitude among traders recently, I sure did not see this rally coming. It sure helped that the Dollar Index was sharply lower and maybe the funds were as short as they could get. At any rate it was a nice rally. I read on Pro Farmer that the funds bought about 11,000 contracts, or 11 million bushels. The charts are looking better as corn posted a hook reversal. The key will be can we get follow through Wednesday?

Beans had a big day, too, posting gains of 14-16 cents a bushel. It was the biggest one-day gain going back to April 1. Pro Farmer reported that the funds bought around 9,000 contracts or 45 million bushels. It sure seemed like we hit some buy stops that increased the gains. Beans were supported by soybean oil, which has had big gains the past couple days after the EPA finally released the biodiesel mandates. Those mandates favored more bean oil demand for biodiesel. Will we see the rally continue Wednesday or give back a big portion of today's gains?