Our markets broke lower overnight – the culprit?? A line of thunderstorms (that held together better than forecasted) moved through North and South Dakota overnight and is currently approaching western Minnesota! Quick, pull up your favorite weather radar app on your phone and scroll north- you will see exactly what the trade sees, rain. Congrats, you are a weather expert! Ha, while this precipitation is definitely a welcomed sight, this one event really shouldn’t be a huge market mover all by itself. Although it does give us a glimmer of hope for an improving weather pattern which we need to be aware of. Watching the price action during the overnight session last night, it looks like when prices started slipping they triggered some additional sell orders and it all tumbled onto itself and we were quickly down double digits. We will see how this situation plays out as the day goes on.
While we are talking about weather, as I scroll through the 6-10- and the 8-14-day forecasts, they all still look hot and dry. The weekly U.S. drought monitor maps came out yesterday and it appears that the dry/drought conditions have expanded in Iowa, now nearly encompassing the entire state! All those maps are copied down below these comments.
Overall, for today we need to remember it is Friday which means we have another couple of days’ break from the market. The weather is still the main topic of conversation, and so far this morning, the market is spooked by that system up north. My thoughts, unless we see major changes in the midday weather forecast models I wouldn’t be surprised to see us recover from here all the way into the close this afternoon.
Corn is 10 to 15 cents lower
Soybeans are 15 to 20 cents lower