Godot Arrives...and He's Buying Grains

I guess those USDA numbers were surprising. I was surprised by the reaction. It looks like there are people willing to get long at these higher levels. Hope it works out for them.

The hard wheat futures didn't quite keep pace with the CBOT, but it was pretty close. Even with the tighter grain inventories and the new highs in Corn, the grains are not going to get much ink from the press since other commodities like cotton, tin, gold and others are all making more stunning moves higher at the moment. Unlike this Summer, the grains will have to see actual demand eating into inventories to keep the rallies going. That said, the fundamentals do look positive. My thinking is that the next leg of the rally in wheat will see stronger performance from hard wheat futures relative to CBOT than we saw on the first leg this Summer.