Period of market volatility
MORTON – As we all prepare for a holiday weekend, it looks like the markets are too.
During this period, we tend to see market volatility with the light volume we have seen lately. The wide price swings from Monday are very indicative of holiday trade.
“People have price orders in that’ll be above or way below the market that somebody wants to see filled,” said Ellen Dearden of AgReview. “It appears right now that the bean market is trying to take a little bit of a breather. We’ve got a lot of bullish signs in beans with the spreads looking bullish.”
We have seen an outstanding move upward in the bean market during the past several months. Basis looks strong to support these beans at higher levels, according to Dearden.
Everyone will soon be talking about the January 12 final USDA crop report. The government could issue a surprise by downsizing either the corn or soybean crop. Dearden said you will want to pay attention to the final corn and soybean supply numbers.
Dearden is still watching South American weather closely as the forecast for the next two weeks indicates decent rain chances in some locations with dryness continuing in southern Brazil and into Argentina. This follows the La Nina weather pattern we have been in during the fall and winter.