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What goes down, must come up? I am not sure if there is some type of reverse law of gravity that exists in the commodity universe, but after a week of general pressure, we have grain and soy markets on the rebound this morning led by none other than wheat. The fact that Egypt was a purchaser of US wheat, suggesting we are competitive on the world stage certainly helped, but I suspect much of the buying is little more than end of week and end of month short-covering. If we were to close right now, for the week, December wheat would be down 8-cents, December corn up 2-cents and January beans up 3-cents.
We did finally see a little positive news in the daily export system. The USDA reported that we sold 260,000 MT of beans to unknown destinations. Of this total, 200,000 is for this current marketing year and the balance for 2019/20.
There is still quite a bit of nervousness and volatility over in the equity trade and with the pressure, this morning, once again the major indexes have slipped into negative territory for the year. Unfortunately, that has also translated into a rush into the U.S. Dollar which is closing in on the calendar year highs. While the certainly does not appear to be hindering the commodity markets this morning but will undoubtedly be an excuse for selling on another day. Of course, it does appear that the dollar index is moving close to an overbought position and ideally will have turn back lower before it becomes a focal point once again.
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