What Traders are Talking About:
* Back to 'normal.' Traders return from last week's holiday-altered trading schedule to a "normal" week of work. But now that we're into the holiday season, news is typically lighter and trading volume usually thins as traders focus on closing out their books for the year. As a result, it typically doesn't take as much to move markets during the holidays and price action can be highly volatile. But it also means there are some very quiet days.
The long and short of it: Fresh news is limited to start this week, meaning much of traders' attention will be on outside markets.
* Focus on end-user demand. Global end-user demand has picked up following the recent, sharp price pressure. Much of the attention is on China and it's appetite for soybeans and soyoil. But corn demand has also picked up. Basis for corn and soybeans is on the rise amid the improved demand and tight supplies. On the flip side, wheat demand is still unimpressive as global end-users are turning to cheaper alternatives to U.S. supplies. While Black Sea origin supplies are tightening, the U.S. faces competition from other countries.
The long and short of it: Demand is the key to whether corn and soybean futures continue to strengthen following the recent price pressure.
* Greece bailout deal expected. Euro-zone leaders meet today as they try to iron out details on the next tranche of bailout funding for Greece. Leaders from Germany and France, the euro-zone's two big dogs, are confident a deal will be reached, which should give investors some confidence on that front. The biggest question doesn't appear to be whether Greece will get its needed funding, but what concessions will be agreed to.
The long and short of it: European leaders have repeatedly shown a willingness to keep Greece (and others) afloat. That will very likely be the case again, it's just a matter of hammering out the final details.
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