Funds are short at the end of January and renewed purchases from China are yet to be seen. According to Allendale President Steve Georgy, both are dragging on the markets. “China is on holiday this week. We won’t see purchases happen yet. Not only that, they probably won’t purchase until the middle of February,” said Georgy. “If we don’t have bullish news, the market tends to fall of its own weight. The funds are still short and nothing is shaking them out of positions.” South America could have a decent soybean crop. Georgy said it’s hard to get the grains to generate an upside with that kind of a crop. “The question is who will hold China accountable for what they’ve now signed. With a big crop coming out of South America, we do have to be concerned with what that looks like relative to price.”
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