Out to the woodshed we go with soybeans they closed lower by 3%. Support has given and longs liquidating .The pro farmer tour of Crops have not reported anything Bullish for Soybeans.Crops looking real good .Not only have soybeans toppled But Soymeal as well it closed down 2.5% and Soyoil less bad only down 1%. The net longs in Soybeans have been liquidating and this probably won’t stop as Weather concerns abate and Support has broken.Aggregate soybean volatility was higher by 9.5% today,but the move lower was more orderly than Chaotic.
Corn finds itself lower as well .The pro farmer tour did offer some words of caution regarding Size of Corn Crop but it shouldn’t cause a bullish move. Crop will still be a record.
Overnight Currency vol. is closer to lows then highs,Indicating little worry that Yellen will rock the boat.The 25 Delta Risk Reversals Show less negative pricing since yesterday in GBP Indicating more calls then puts being bought ..Similar scenario In Yen more upside being bought then downside,the Euro is the opposite as the skew moves More negative and pricing in More of a downside move then upside.