Traders look to solidify positions with WASDE out of the way
Traders are expected to solidify year-end positions now that Thursday’s USDA supply and demand report is out of the way.
Karl Setzer with AgriVisor LLC points out next week will be the last full trading week of the year.
“Many traders already rolled their positions out to the March contracts, they know what they have for year-end. If we see a build in volatility in the last two weeks, it would likely come from the managed money side.”
CHS Hedging director of producer brokerage Kent Beadle anticipates a more volatile end of the year because of higher price levels.
“And we do have large long speculative positions, which honestly is affecting trade today. You see profit taking set in after what was a bullish report.”
He says price ranges for the balance of December and January might be a little bit larger than normal.
Karl Setzer interview:
Kent Beadle interview: