Grains closed higher:
Mar Corn +7 1/4 cents/bu (5.98 1/4)
Jan Soybeans + 15 3/4 cents/bu (13.08)
Mar Chi Wheat +21 ¼ cents/bu (7.99)
Currently:
Cdn $ +0.00195 (77.42 cents)
WTI Crude Oil +2.85/barrel (71.46)
Grains enjoyed a nice bounce during the day as the markets were “risk on”. This morning, soybeans pushed past their 200-day moving average, giving the commodity momentum to move upwards.
We are starting to see signs of weakness in the South American corn and soybean crop sizes as analysts start to announce drops in their estimates due to dryness. This is getting the bulls all riled up, encouraging commodity price movement.
Outside markets are seeing some support today, as the Biden Administration in the US announced they are not going to be implementing any COVID-19 lockdowns.
Despite no lockdowns, Omicron directly impacts energy consumption, via official travel, or simply people’s reluctance to travel, leaving prices in the sector susceptible to fear emotions. However, its impact on the food-based commodities is less significant, leaving them as an attractive alternative for investors. This is one of the factors impacting today’s rally.
In conjunction with the investors moving to the safety of the commodities with their money, as we near closer to the end-of-the-year, trading is often erratic due to holidays and year-end accounting.
Markets are closed on Friday for Christmas Eve, but otherwise, the CBOT is relatively unaffected by the upcoming holidays.
Funds are thought to have been all buyers today.
Grains closed higher:
Mar Corn +7 1/4 cents/bu (5.98 1/4)
Jan Soybeans + 15 3/4 cents/bu (13.08)
Mar Chi Wheat +21 ¼ cents/bu (7.99)
Currently:
Cdn $ +0.00195 (77.42 cents)
WTI Crude Oil +2.85/barrel (71.46)
Grains enjoyed a nice bounce during the day as the markets were “risk on”. This morning, soybeans pushed past their 200-day moving average, giving the commodity momentum to move upwards.
We are starting to see signs of weakness in the South American corn and soybean crop sizes as analysts start to announce drops in their estimates due to dryness. This is getting the bulls all riled up, encouraging commodity price movement.
Outside markets are seeing some support today, as the Biden Administration in the US announced they are not going to be implementing any COVID-19 lockdowns.
Despite no lockdowns, Omicron directly impacts energy consumption, via official travel, or simply people’s reluctance to travel, leaving prices in the sector susceptible to fear emotions. However, its impact on the food-based commodities is less significant, leaving them as an attractive alternative for investors. This is one of the factors impacting today’s rally.
In conjunction with the investors moving to the safety of the commodities with their money, as we near closer to the end-of-the-year, trading is often erratic due to holidays and year-end accounting.
Markets are closed on Friday for Christmas Eve, but otherwise, the CBOT is relatively unaffected by the upcoming holidays.
Funds are thought to have been all buyers today.