Cash Strategist 11/30/2022
Holiday Trade Begins to take shape
We are now at a stage in the marketing year when holiday trade starts to become a factor. Traders tend to start shoring up market positions following Thanksgiving and will increase this activity into year end.
Funds have been holding a sizable long position in corn, so to see liquidation wouldn't come as a surprise. Traders have gains in all commodities this year, which may heighten selling pressure as well.
The trade is already starting to look forward to next year’s U.S. ending stocks and projecting sizable increases. This is especially the case for corn, where some believe 2023-24 ending stocks could nearly double from this year.
Those thoughts are driven by expectations for U.S. farmers to plant upwards of 3 million more corn acres next year and a return to trend yields....
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