The Bears Get Christmas Too?
There is an old saying in the grain trade that "if the bears have Thanksgiving the Bulls will have Christmas." There is no question that the Bears had Thanksgiving with corn prices at decade lows. Bean prices were a little better but not a lot. So, with Christmas only 3 trading days away it sure looks like the bears will have Christmas too. In the grain markets there are no guarantees just tendencies. That means in many years the old saying comes true but it appears this year will be an exception.
However, it would not take a large drop in the corn or soybean crop in South America this winter to get the markets attention. That is because there is huge world demand for corn and soybeans. There is another old saying in the grain markets "the best cure for low prices is low prices." Hopefully that is what we are seeing now. Because corn and bean prices are so low we are encouraging consumption as end users can make good profit margins using corn and beans.