Apparently 4-month low in US wheat and Friday’s ugly close brought out the value shoppers in Egypt.
Seems like Egyptian politicians are just like any other politicians. They know what happens when their subjects can’t get reasonably priced bread. Generally, that’s a bad outcome for the politicians.
We open Sunday night electronic trading in a few hours. My guess is that traders who 1) stayed short based on Friday’s ugly close or 2) went home short looking for follow through; they will lead the rally up as they cover losing positions.
In general, this should be supportive for corn prices as well. Tonight’s trade should be interesting.
My choice to go home long on a small spec seems like a good idea. Boris, what do you think?
It just seemed like we had gotten over done on the sell side Friday.
Remember, December is generally a lousy trading month. If you are long grains on Friday’s sell off.
1) take profits and 2) put a trailing sell stop below and sit tight.
Have a good Sunday night.
CER