# What causes the market to rally?

> 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.

- Date: 2016-12-06 · published 2016-12-06T12:00:00.000Z
- Category: market · region US · magnitude low
- Page: https://feedsoft.ai/events/6323-what-causes-the-market-to-rally
- Commodities: [Corn](https://feedsoft.ai/c/CORN.md), [Wheat (SRW)](https://feedsoft.ai/c/WHEAT.md), [Soybeans](https://feedsoft.ai/c/SOY.md)

## Why it matters

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.

## Read by commodity

- SOY: bullish ▲
- CORN: bullish ▲
- WHEAT: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| WHEAT | 2016-12-05 | 1 | +3.5% | 5.2 | 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. |

## Sources

- farmprogress.com: https://www.farmprogress.com/soybean/what-causes-the-market-to-rally-

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.