Soybeans continued their march higher as they closed higher for a 7th consecutive session. The Chinese market as well as the Malaysian palm market closed higher last night giving market bull’s early momentum.
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Soybeans began the week like they ended last week, on a volatile note as January traded a 14-½ cent range. Weakness was attributed to a continuing run up in the U.S. dollar and a weaker Chinese market. The U.S. dollar continues to see strength as the rest of the world currencies are under pressure and the bond market continues to fall apart which is pushing money to the United States. The Chinese soybean market was down another 5% overnight after dropping 4% on Friday.
Monday morning, corn saw 8 a.m. sales of 101,000 tonnes to Barbados, which was enough to suggest very light support. At 101,000 this sale was the smallest possible to make the 8 a.m. sales report, so it didn't catch large market attention.
There was little doubt at all fund buying was seen in the corn on Monday. Now the next question should be: Is this just a one day buy to start a new month and new quarter or if this is going to be a longer term short covering event for the funds?
Spill over selling continued again today in corn, which helped to post new contract lows. Soybeans consolidated within Friday's range on Monday as supply bears and demand bulls continued to do battle. Wheat saw another negative day as new lows were made again.