Setting up for a Wild Ride?
Aug 31, 2013
We eneded the week on very thin volume and final position squaring ahead of the long holiday weekend, which coincided with month-end (both of which traditionally prompt some form of liquidation), that was evident in the markets. In a nutshell this means traders who have been long the soybean market, may look to bank some profits, in turn causing the market to backpedal a bit, as we saw Friday. The weather is also causing a few bulls to pause as lower temps and scattered rainfall is in the forecast. We saw record high temps from Des Moines, IA to St. Louis, MO, on Friday. There were scattered showers, at best, for areas in Iowa and northern Illinois, on Friday night. It looks like we have one more day of heat before the real break could happen. The problem is if the rains don't fully develop or fall in the key areas, when we open up Monday night we will be off to the races. Better than expected rainfall over the weekend and more rains added to the extend forecast and we could tumble back down the mountain. To say we are officially at an "inflection point" would be a gross understatement! Producers and traders alike need to stay buckled in, preparing for an insanely wild ride during the next 30-days. Get all of my daily comments in the Van Trump report by CLICKING HERE. Have a great Labor Day Weekend.... Thank You