From Bloomberg: Cotton futures fell the most in more than two weeks after a report showed overseas buyers scrapped orders for supplies from the U.S., the world’s biggest exporter. Orange juice rose.

In the week ended Aug. 18, canceled orders for upland cotton exceeded sales by 230,308 bales for the current crop year, the U.S. Department of Agriculture said today. A bale weighs 480 pounds (218 kilograms). That’s the ninth time in 10 weeks that there were more canceled orders than sales.

http://www.bloomberg.com/news/2011-08-25/cotton-declines-as-u-s-sales-are-canceled-orange-juice-rises.html

Again, please do not be fooled about earnings. Most companies are doing well because of costs savings and raising their prices. The consumer is still struggling and with today’s news that Germany had a bad GDP announcement, things could get more complicated. Germany was supposed to be the key factor that would help the eurozone get back on their feet.

The 6-10 day precipitation map shows no real change with a moderate amount of rains added to the Dakotas. The South remains the problem with anything south of I-80 still seeing spotty fields. There is plenty of time for beans to recover and develop their third bean per pod but corn remains a very questionable situation heading into the WASDE report.

Hedge funds and owners of companies seem to purchasing bank preferred stocks. This is what they did in 2008 when the market fell 700 points and of course because of the financial crisis. Some are yielding as high as 10% because of their prices spiraling downward over the past few weeks. The market is up due to large companies testing the waters and people buying back their shorts. Do not be fooled by today!