Well, the market took three days off for the Memorial Day holiday and when the screens all turned back on last night we rocketed higher on the open. Reason? The U.S. forecasts changed over the weekend – now looking hotter and drier through mid-June, putting a little stress on the U.S. crop and giving the bulls a reason to re-join the party.
So, for today’s outlook, let’s keep it simple. We are in a weather market and hot/dry weather forecasts are injecting risk premium back into our prices. If we can close higher today (in particular above a few key moving averages on the chart), we could see follow-through buying from there. Of course, a weather market giveth and a weather market taketh away. I hope you are pumped up about looking at forecast maps for the foreseeable future!
Corn is 17 to 22 cents higher
Soybeans are 20 to 25 cents higher