Will funds continue to liquidate soybean commitments?
Holiday weeks and the end of the year in general are notorious for volatility and fewer market participants. Those factors are likely behind the price swings we’ve seen just this past week. Focusing on the longer term, the question is whether funds are done liquidating for the moment.
One piece of news supporting additional fund liquidation is export cancellation by some small Chinese processors, folks who had the disadvantage of not locking in soybean prices a while ago.
Weather in South America is still less than favorable. Some soaking rains are due for Argentina in the coming days, fortunately expected to be widespread. That should help with soybean emergence, but that sort of weather needs to continue through pod setting for the market to feel at ease.
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