Our markets are starting off stronger this morning – similar to yesterday, thanks to continued hot/dry weather keeping the traders on edge. Of course, when looking at yesterday’s price action, our markets started off stronger then too only to get hammered lower with corn down 20c at one point. The reason? One of the weather models suggested that a wetter pattern would develop over the Northern Plains and after that little piece of news the route was on. Of course, it turns out that not all of the weather models agreed on that thought and the market came off its lows, rallied into the close, and continued that direction higher overnight.
Annoying, right? This is what we will be dealing with though. When there are this many “unknowns”, the market is hungry for any piece of knowledge they can get their hands on to get a leg up and may over-do it, either to the upside or the downside depending on the day.
So for today, we look to start off higher and remember we have a weekend in front of us. You could see some volatility into the close today because as you know, the market won’t trade again until Sunday night’s 7 pm open and weather forecasts can shift quite a bit in that time. Also remember, next Thursday is when we get blessed with another S&D report from the USDA that will no doubt have an effect on the market. Will have more on that next week!
Corn is 8 to 12 cents higher
Soybeans are 14 to 18 cents higher