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January 10 Grains Commentary: Virginia McGathey

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I'm Virginia McGathey here on the floor at the CME Group. reporting on the grain market. Today in soybeans it was down again. The futures really continue to fall as a new wave of selling comes in and pushes it even lower. The big expectation is that the USDA report that's coming out on Friday is going to also reduce demand as well as increase the stocks. That's really putting some serious pressure on the market, and it kind of broke through the support level at 954 on that March contract. If it continues to bring more selling, we could really see the market press through a lot of the technical numbers. At that point, it makes it kind of difficult for it to have some kind of rebound. There is also better weather in South America, and it seems that the traders just seem really timid to hold their long positions really ahead of this report. So we have to watch that closely. And who's to say that maybe on the report we get a number that might pick the market back up. We are getting into oversold conditions so we're gonna watch that as well. Corn was pretty steady today. The futures really traded in a very tight range, just a couple of cents. The market is holding on to, you know, a minor uptrend, but it really has no legs yet. You know, perhaps it's waiting for that report on Friday to try to give it some information or some news that might give it a little bit more of a lift. But it's still hovering just above the contract lows. That being said, for right now that's pretty good, but we'll have to see for the future. The wheat was also firm today. It kind of bounced around a little bit, but we got some support in the futures that kind of like give the prices somewhat of a boost. There is still some weather concerns about the wheat because we're expecting a frigid weather again next week. But the uptrend is still remaining intact even though long-term there's a lot of wheat out there, was really on the downside. But the market still keeps to be marching ahead. So the next target, looks like 437, you know, perhaps we'll get there. We're only a couple cents away. If that happens and we get, like, a new wave of buying, this could be really great for wheat because it really tumbled a lot from its high when we were rallying back in June. Now, it looks like that oversold condition started to build a little bit of a base and got us to where we are today. We're gonna watch what happens on Friday to see, you know, where we can go from there. I know there's gonna be a little bit of positioning back and forth for tomorrow for sure so I expect a choppy trade. And then Friday morning we're gonna be really patiently waiting for that report to come out. That's all from the floor at the CME Group here in Chicago. I'm Virginia McGathey.

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Duration: 2 minutes and 55 seconds
Country: Andorra
Language: English
License: Dotsub - Standard License
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Views: 6
Posted by: cmegroup on Jan 10, 2018

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