As the holidays approach, the commodity markets can begin to slow down. This year may be a bit different. With the growing season over and most of harvest complete, we are entering a slow time for grain movement, says Doug Werling with Bower Trading. “All the cash grain that is going to be moved this fall is finished and the grain bin doors are closed and locked,” he states. “It is going to make some significant market action to get producers to sell grain yet this year.” Werling noted, however, that there is a net short fund position in the market of over 200,000 contracts, “And we saw a double bottom and small up move in corn at the end of last week.”
Werling says, this year, a very active energy sector may provide some movement in the grain market in December, “We are seeing great profit margins in ethanol and we are seeing good demand for biofuels.” This along with a very active crude oil market will have an impact on grain futures, he added. He urges producers not to get too caught up in the holiday and stop paying attention to opportunities that market may present between now and the end of the year.
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