What Traders are Talking About:
* Prepare to be disappointed. Investor sentiment is on the rise heading into a weekend summit of EU leaders. But considering there won't be any concrete solutions agreed to in terms of solving the debt crisis as Germany and France can't come to complete agreement, investors are likely to be disappointed. Another meeting is scheduled for next Wednesday, at which it's hoped EU leaders can agree to some solutions. Meanwhile, German business sentiment dropped for the fourth consecutive month and is at its lowest level since June 2010.
The long and short of it: The "dance" investors are doing with risk sentiment signals they want to be bullish, but the reality of the matter is the macro-economic situation is far from bullish. Any excitement is currently built on hope, not reality.
* Grain traders want to be bullish, but... Much like the general investor sentiment, grain traders seemingly want to be bullish. But there hasn't been enough consistent bullish fundamental news to propel sustained buying interest. As a result, they are having to react to macro-economics. That's keeping price action in grain and soy futures choppy.
The long and short of it: Until the demand side of the market consistently gives traders a reason to buy, price action is likely to remain choppy.
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