After a couple rocky, volatile, lower trading days in a row - corn and soybean prices both inched back higher last night. While in general, the dry conditions look to persist in Brazil and the U.S., a few rain showers here and there on both hemispheres seem to have taken the edge off. It feels like the market could be satisfied with the recent rally to multi-year highs, and willing to take a pause. While the bullish trend still feels alive and well, if we are to push higher in the short term, we may need fresh/additional bullish stories (you have to feed a bull market every day, right?) For the time being, US acres are getting planted at a blistering pace which could prevent that. Of course, when you dive into just how many acres are getting planted, it could be a different story.
Overall today while the key fundamentals remain in place (tight S&D balance sheets, strong Chinese demand, deteriorating second-season corn crop in Brazil, strong planting into dry soils in the Western Corn Belt), the bulls in the market will be looking for “what have you done for me lately” and today is starting off a little quiet on that front.
Corn is steady to a nickel higher
Soybeans are steady to a dime higher