Good evening,
Its Sunday night and we can expect some volatility on the opening of the grain markets…Weekend weather was almost perfect, so once again, I would anticipate the weather premium will be squeezed out rather rapidly.
If the November beans fall below the 900-894 range, I would expect a flush out brought on by long liquidations down to the 862 to 56 levels. Keep an eye on our July lows on the charts.
Pay close attention to the wheat market as well, Friday’s sell of may have been overdone, and if the market opens higher for any reason, you could see a spike higher as traders who went home short might have to cover if the wheat opens 5 to ten cents higher…
Its 654 now, and the markets will be opening in 6 minutes.
Over the past weeks, Sunday nights have been full of opportunity with substantial moves depending on the psychology of the market.
Perhaps tonight will see a continuation of that scenario.
On Friday we saw bean’s being bought, while corn and wheat were sold. Most analysts agree that the farmer, on average, is holding a lot of corn. A lack of demand from China or any such rumor of a lack of demand would exacerbate the problems for those farmers who were holding off marketing in hopes of either a weather or demand scare to drive up prices..