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It was a quiet week at the Board of Trade. It seemed most of the activity was outside on LaSalle Street, as the participants in Occupy Chicago braved some pretty nasty weather at times to continued their cause.
Inside of the CBOT, we witnessed corn trade in a rather modest 35-cent range, while soybeans traded in a wider 70-cent range. In the end, corn could not move more than a dime from last week’s closes. Rumors of additional corn sales to China never materialized this week and with little other fundamental news available, the market focused on the European debt crisis as well as technical action.
The trade in December corn above last week’s high of $6.55 seemed to set the stage for a move to $6.85 where the next critical area of resistance lies. Friday’s disappointing trade did not provide the expected follow-through. General commodity buying next week may allow a test of that $6.85 level.
Soybeans clearly had a disappointing week with values closing over 50 cents lower than last Friday’s close. The main news in the soybeans surrounded poor exports and European debt concerns. Mid-week rumors of Chinese cancellations did not materialize, but the weekly export sales proved to be a big letdown. Soybeans have the most to prove next week, but expect them to find some support as we are currently nearer the lower end of value.
The market is void of fundamental news at this time, which makes it vulnerable to large intraday moves, as we saw this week. It’s easy to get bullied in this environment, so keep your position sizes low and consider stops on a closing basis rather than straight stops.
(click the charts below to enlarge)