Corn and soybean markets recovered on Friday, but face a slow holiday week this week. Following the November crop report, the market first sold off and then traded sideways until Friday when we had a nice short covering bounce. Doug Werling, with Bower Trading, says the move was expected, “The fund short position is around 260,000 contracts and that is an all-time record.” He said it is not going to be one factor that generates a big rally, but rather a lot of little things that slowly lift prices.
Werling sees a number of demand factors are at work in the market, giving prices some support as we go through the winter months. But, this week is a holiday week where he says very little is going to happen, “We will start off on Monday and get less activity every day. The market will trade a short day on Friday, and that will be one of the most worthless trading days of the year. Everyone will be shopping and not trade.” Those thin markets can be quite volatile, but they can also be very dull.
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