Friday, May 16, 2008

Second Rise in Prices

Here comes the second wave of buyers. This is very typical behavior for the markets. The first wave occurs at the opening bell, and then some profit-takers will exit with quick profits. Then, after a few bars print across the screen, the second group of buyers will step in. This second group is typically much smaller than the first, and will result in a smaller rise in prices. Then, anything can happen, including a strong sell-off. However, I would be very surprised if the soybean market doesn't hold most of its gains from yesterday and today.

Meanwhile, corn and wheat are flat to modestly higher, but trading volume appears light.