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| Just so that everybody knows what happened on the close yesterday, I am writing this brief note to everyone. As you may or may not know, the all of the commodities now trade both in the open outcry pit and also electronically. These are two separate trading platforms, but typically trade close to each other because traders can see and watch each of the platforms. Yesterday was the exception. On the electronic trade yesterday March Soybeans broke 44 cents in last 19 sec on a volume of 1400 contracts. This is not a huge volume and reflects the "holiday" volume - especially since it was a Friday before a shortened session on Monday.
What to make of all this can be discussed at length. Is it the signal that the top is in or just an abnormality brought about by the low volume and lateness of the order? It does have an effect on the charts. One thing was sure on Friday afternoon. It was concerning enough to the cash trade that no one was willing to take on much of a position. Most if not all processors and buyers went to either "no bid" or "basis only" soon after the futures closed. Elevators followed the lead. There was also some taking protection on corn of 5 to 10 cents and others with no bid on corn as well.
It will be interesting to see what Sunday night's opening will bring. Remember that Monday's session will close at noon. We will be open Monday morning as usual. Just wanted to make sure everyone knew what was happening even though I hadn't planned to put out a regular weekend update.
Bill Mayer
Roach Ag Marketing
[email protected]
309-365-2500 | |
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Friday's soybean market - what actually happened?
