Grains Spend Week Fighting to Move Higher
After heavy pressure for most of July, the farm markets have been trying to use short-covering and demand to propel higher this week.
And it looked like that was going to work – until Friday.
For the week, the soybean market has dropped 8%, while the corn market is down nearly 2%.
Although it's down hard today, the wheat market is up 1% on the week.
Midway through, the markets had fallen so much that the traders holding short positions started buying back (profit-taking) those puts. With put contracts, as the market falls, profits increase.
The Malaysian airplane tragedy has sparked more speculation about grain trade impediments for the Black Sea region. Thus, the wheat market found a bid Thursday. Those gains are being taken back to close the week.
Big U.S. soybean sales hit the wires this week. That helped stopped the bleeding of the soybean market.
For corn, the market is still eyeing demand and crop weather. Like soybeans, export sales helped curb deeper losses in this week's market.
And with the weather outlook appearing favorable, very few traders want to get caught 'long' these markets.
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