The longs/bulls in our ag space this week were quickly made aware of another risk to watch out for: the outside markets. Two days ago, nobody wanted to touch our commodities as the financial/equity/energy markets were all getting smoked and our markets faltered right along with them. Yesterday, the Dow rallies back and the bulls have a little more fun. Today? So far so good, with crude oil and the Dow both currently higher.
For the moment, you can look at a lot of different weather outlooks for the next couple weeks and you won’t find much for rain events which should keep a bid under this market. However, there is uncertainty everywhere you look – uncertainty about weather crop production, uncertainty about inflation and money flows in/out of commodities, and uncertainty about the COVID risk and what another round of flare-ups would do to the economy. All of this has our markets a bit skittish and we seem to go from “risk on” to “risk off” as quick as ever. Best to be on your toes!
Corn is 3 to 5 cents higher
Soybeans are steady to 3 cents higher