Grain Prices Going Up
With the crop report about to come out, grain prices rallied some as investors raced to cover their positions in case something unexpectedly changes which would tear into their short positions.
Wheat, corn and soybeans were all up as the shorts were covered, as the crop report from the Department of Agriculture is due.
With grain prices having downward pressure for a month on large inventories, they are due for an upward move, and grain traders want to protect themselves from that.
The concern is if for some reason the supply of grain has declined in any way; an unlikely scenario, but you never know in the markets.
If nothing has happened to change the grain levels, we should see a lot of short positions entered into again.
Wheat for March delivery rose 10.75 cents, a 2.3 percent gain, to settle at $4.84 a bushel. Soybeans increased 16 cents to $9.295 a bushel, and corn increased 4.5 cents to $3.56 a bushel.
Grain Prices Going Up
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