I thought it was something Komrade Obama said last night, but apparently corn’s rally today was due to short covering and buy orders that kicked in on the rally.
According to my broker, corn still sits about $.50 below the cost of production. I’ve read that for the most part, most grains and softs are currently sitting either below or just at their respective costs of production.
Reading this article reminded me that I completely forgot to roll my 2 March corn contracts – a couple more days and we might have seen a big old truck from Iowa pulling up at my doorstep to drop off a special delivery. Boy the wife would have loved that one.
So I just rolled them, but only picked up 1 May.
CBOT Corn Review: Surges; Short-Covering, Spread Unwinding