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Corn and wheat rallied on Monday, driven mainly by short covering as large speculators bought back bearish futures bets. Soybeans rose on good export sales and strong Chinese crush demand, while corn and wheat were mixed the following morning.
Short-covering rallies in the off-season tend to fade without fresh fundamental support, so feed buyers should not assume lasting price gains. Soybean strength from export demand is a firmer signal for meal and feed costs.
farmprogress.comDec 6, 2016Not enough comparable past events yet for a historical read.
Not enough comparable past events yet for a historical read.
Not enough comparable past events yet for a historical read.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
It attributes Monday's (5 Dec) corn and wheat rally mainly to short covering as large speculators bought back bearish bets, a sentiment/positioning mechanism that explains the sharp, outsized move.
