Reaction to the Reaction

7-12-07, 10:25 am,

In this business it is so often more important to gauge price action in relationship to "expected report reactions" than it is to study the raw data.

After nearly an hour of trading, corn and soybeans are not responding to the weather fervor nearly as much as the pre-opening rhetoric suggested. It should also be noted that yesterday's corn and soybean market action in relationship to weather excitement was also quite disappointing.

As for wheat, the rejection of the higher opening makes perfectly good sense in terms of recent price gains having discounted bullish expectations.

For all practical purposes, traders are quickly discarding the report data, as the focus shifts almost solely to weather.

As stated in other posts, the fundamental foundation is very shaky in all these markets and an actual production-reducing weather problem is needed to justify current price levels.