CNS Canada — Soybean and corn futures at the Chicago Board of Trade moved higher during the week ended Wednesday, but both commodities remain rangebound overall and looking for an outside spark to push values significantly one way or the other.
January soybeans moved above their 20-day moving average on Wednesday, which triggered some additional buy stops, but activity was on the thin side during the last session before the U.S. Thanksgiving holiday.
“I think we’re rangebound right now… and every time we test the contract lows we’ll probably bounce off of them,” said Terry Reilly, of Futures International in Chicago.
He placed the January soybean contract in a range between $8.45 and $8.80 per bushel (all figures US$).
The situation is similar in corn, according to Reilly. He said corn was also rangebound, with March corn stuck between roughly $3.60 and $3.80 per bushel.
Argentina elected a new government over the weekend, and U.S. traders are now following news out of the South American country closely. The new president-elect had campaigned on a promise to cut export taxes for soybeans and corn.
The new government takes office Dec. 10, but Reilly said the expectations for a drop in export taxes have largely been priced into the futures for now.
— Phil Franz-Warkentin writes for Commodity News Service Canada, a Winnipeg company specializing in grain and commodity market reporting.