Indiana Grain Company, LLC

Posted: 11/21/11

By: tomgrisafi

What will traders have to be "thankful" for this holiday week?

According to some market watchers, if the price of corn gets any lowers, corn bulls will probably be thankful for some Chinese buying.

Fears of contagion in Europe's debt crisis and decision day for a panel on slashing the U.S. budget deficit will loom large in the grain market this week even as export demand remains in sharp focus, a report from Reuters reads.

With the U.S. harvest of corn and soybeans in the bag, fundamental traders will focus on demand for price direction this week while financial investors could keep risk assets like grains at arms length if no credible solution emerges to contain the euro zone's mounting debt problem.

Trading volume is expected to be light this week due to the Thanksgiving Day holiday on Thursday, with many traders likely to take Friday off for a long weekend.

U.S. Government data on Friday showed large speculators reduced bullish bets in Chicago Board of Trade corn by 18,251 contracts, confirming suspicions that money managers were reducing grain markets exposure in favor of other commodities such as oil.

Source: Reuters

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