Corn .08 higher
Beans .06 higher
Temps and weather are still the driving force behind the markets and will be for the foreseeable future, with both corn and beans higher on the overnight. Temperatures remain below normal which is not a bad thing yet, but it is not necessarily a good thing either. Higher precipitation in eastern corn belt is not helping that area to get planted. Overnight corn has made new highs for the week and a close above $4.40 on the July board suggests another leg higher in corn. The market is struggling right now to determine the number of prevent plant acres with analysts thinking 6 to 8 million acres would have $4.50 December corn as the low end. If prevent plant exceeds 8 million acres $5.00 becomes a possibility.
There are of course other factors to consider as we move forward from here. Will the weather remain cool and wet or will we start to see warmer temps and heat units going forward? On the demand side of the equation the USDA weekly export numbers will be out this morning with the trade looking for 250-550,000 mt on corn after last week's disappointing report which showed net cancellations. Ethanol production was up last week and stocks declined. The market will need to see strong demand going forward to keep this rally intact.