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Markets Unchanged for Wednesday Open
Corn and soybeans were little changed since nobody wants to be on the wrong side of the trade in the event holders of short positions decide to liquidate positions and begin buying.
Money managers as of November 10 were net-short 53,164 corn contracts; 48,930 soybean contracts; and 22,914 Chicago wheat contracts, according to the Commodity Futures Trading Commission.
Traders and analysts are worried that if the weather turns sour in Brazil or some demand news pops up, holders of short positions, or bets that prices will fall, will begin liquidating positions and buying back contracts.
Prices are underpinned as farmers hold onto supplies in the U.S. rather than sell at low prices, and as wet conditions in Brazil spark worries about flooding and delayed planting.
Still, the lack of any actual bullish news is keeping prices capped, creating somewhat of a stalemate between buyers and sellers.
Corn futures for December delivery rose ½ cent to $3.62 ½ a bushel in early trading on the Chicago Board of Trade.
Soybean futures for January delivery were unchanged at $8.63 ½ a bushel on the CBOT. Soymeal for December delivery fell 30 cents to $288.20 a short ton, while soyoil rose 0.06 cent to 27.53 cents a pound.
Wheat futures for December delivery in Chicago were unchanged at $4.87 a bushel. Kansas City wheat futures fell 1 cent to $4.75 ¼ a bushel.
In the outside markets, Brent crude oil futures rose 1.8% to $44.37 a barrel, while West Texas Intermediate crude gained 1.4% to $41.22 a barrel. Heating oil jumped 1.9% to $1.3909 a gallon.