It is driving me bananas that the corn prices are as high as they are. A large part of what we are having to deal with is the ethanol thing (subsidized vodka in your gas tank). We grew an enormous crop last year, and with the early planting this year, we will likely grw an even bigger one this year. Just visiting upper Illinois and lower Wisconsin in the last few weeks, I saw great looking corn, even in soil I considered extremely marginal.
However. The grass is very brown.
Short term stuff. We in the Midwest are in desperate need of about five days of heavy rain, and it's not in the forecast. The corn is wilting. A good dousing would solve the problem, but the market has the reflexes of a gnat.It has been very nice and hot here, but the corn needs water. Unless there actually is a drought, then there is no problem and I think high prices should be shorted (minus any crude oil perturbations), but the way the market thinks, a little bit of long corn is the way to go, at least 'til the weekend. It looks like we will be going back up to $6.60. Keep an eye on Tom Skilling's weather reports as to whether you should hold a weekend position.
Disclaimer: Trading in futures and options is very high risk investing. You can lose more money than you invest. Only risk funds should be invested.