Our markets are all lower this morning thanks to better-forecasted rains next week (and thanks to pop up storm showers in Iowa overnight and into today). The bears have been in charge of price action all week with rain in the forecast (bearish), the Biden administration talking about biorefinery EPA waivers (bearish), and the Federal Reserve acting more sensitive to inflation yesterday, driving the U.S. dollar higher (bearish).
Moving forward, we will have another important “weather weekend” as we wait and see whether or not these rains will really fall or not. The U.S. drought monitor released this morning (shown below) highlights the areas of need for all to see. It will be an interesting call for the spec trader whether they want to go into the weekend-long or short tomorrow afternoon.
Corn is 20 to 25 cents lower
Soybeans are 30 to 35 cents lower