Grains do Their Best to Correct Oversold Condition

December 27, 2016 7:13AM CST

In a relatively quiet day for futures markets, grains are stealing the show. With just under an hour left in today’s trading, March corn is up over eight cents, March wheat is up over sixteen cents, and Jan soybeans are up over twenty cents. Technically speaking, all three markets were showing oversold readings. On top of that, there were decently large net short positions in corn and wheat, which once offset, tend to accelerate the reversal a bit.  Adding to the bullish sentiment from a fundamental standpoint is the situation in Argentina, where dryness is becoming more and more of a concern. We’ll see how the weather plays out there, but I’m not certain that it will be enough to cause a lot more follow through to the upside, and it will be something that all grain traders should monitor closely.

Wheat Daily

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