MN Broker Says Markets Were “Spooked” By COVID Variant
It was quite a day Friday for the grain markets. Commodity Broker Gordy Kralovetz with Chiodo Commodities said the markets especially the stock markets were "spooked" by the COVID variant in South Africa. It was a short trading day after the Thanksgiving Holiday on Thursday but there was plenty of action, down and up! Gordy commented a couple times earlier in the week that the last few years the day after Thanksgiving we have seen a nice rally in corn and beans.
Early Friday morning the stock market was down about 800 points and I was quite sure the grain markets would open sharply lower. I was right, corn and beans opened sharply lower. At one point Friday morning corn was down around 20 cents and beans about 30 cents. But, then corn and beans began to work back off the lows.
About a half hour before the close beans had cut the losses in half and corn was about unchanged! Yes, corn rallied about 20 cents off the lows. Then in just the last few minutes corn rallied to up 7 cents a bushel. How about that, corn rallied 27 cents off the lows Friday? What will happen Sunday night when the overnight session opens?
The market was concerned about the COVID variant and more shutdowns or lockdowns. Click on the link and listen to Gordy discuss the grain and livestock markets last week.