Commodities: Grains Eyeing Short-Term Gains

We see potential for a modest short-term bounce in grain prices. Firstly, grain markets held up relatively well amidst broad-based commodity weakness last week. As a result, they are well placed to benefit from a potential bounce in commodity prices this week. Secondly, tomorrow's United States Department of Agriculture (USDA) world supply and demand estimates (WASDE), could provide a boost to underlying grain fundamentals. Given the bearish extent of WASDE data in January, we expect that the majority of bad news has been priced into grain markets and short-term risks to supply estimates lie to the downside. With this in

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