Glacier FarmMedia — Sideways trade is expected to be the norm in the soybean and corn futures markets through the holiday season, as participants continue to get caught up on the data that was delayed during the United States government shutdown.
Updated supply/demand estimates from the U.S. Department of Agriculture released Dec. 9 were largely seen as market neutral, with traders now focused on the steady release of backdated reports that were held back during the Oct. 1 – Nov. 10 shutdown, said analyst John Weyer of Walsh Trading in Chicago. In addition to the weekly export sales data and commitments of traders’ report, he said broader economic data could also provide direction.
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“We’re approaching the holiday market … with slow trading and tight ranges,” said Weyer, adding that he expected contracts would trade “a little higher, a little lower” from day to day.
He placed the March corn contract in a range between US$4.40 to US$4.50 per bushel.
For soybeans, the January contract fell below US$11 per bushel on Monday and Weyer expected it would likely trade around that level for the time being.
The soy market will also be watching for confirmation of Chinese purchases, and more business going forward.
The U.S. White House announced a bailout package for farmers hurt by the country’s trade policies earlier this week. Weyer said that government support would limit any the potential of any upward moves.
