Venezuela

Garrett Toay with AgTraderTalk attributes the rally mostly to corrective buying after a $1.40 break from the highs in soybeans. Traders are also short in the wheat market, which just came off of contract lows in SRW futures.

Darin Newsom, senior market analyst with Barchart, says the grain complex may be some rebalancing by hedge and index fund traders to start a new year and with grains under valued.

Chip Nellinger with Blue Reef Agri-Marketing says soybeans sold off in a classic “buy the rumor, sell the fact,” reaction to USDA confirming China export sales.

Chuck Shelby of Risk Management Commodities says soybeans, corn and wheat were oversold and saw some corrective buying but there was also some risk on buying across the ag complex.

The license would still bar Venezuela’s PdVSA, the state-owned oil company, from receiving any profits from the oil sales in the joint venture with Chevron.