The December corn has traded a 50 cent range from Tuesday morning into the early AM. The market was utter chaos after the 8:30 opening bell, and the algo model traders fought mixed signals back and forth throughout the day. Wheat would trade 12 higher 12 lower 12 higher and finally finish down on the Day. Corn held mostly firm with May continuing to punish the shorts into first notice day. The May contract is still higher this morning with one day left ahead of the roll. Things are out of hand, with all kinds of spreading in meal, bean oil, inter-wheat, old and new crop corn and beans. This is the kind of volatility that is outright dangerous to traders.
The 10 day forecast for South America is mostly the same with dry weather in most of Brazil. The change would be some wet weather in the forecast for Argentina. Temps still in the 80’s to 90’s.
The 10 day forecast for US weather has plenty of rain in the majority of the Central to Southern US. The Dakota’s will be the one of the few dry areas in the next two weeks. The Central US could see up to 3 inches or more of rain. Temps look to be relatively normal for spring. US weather is bearish with plenty of rain. This will be the best conditions to start the season for many in the past 2 years.
Look for this to be a really wild day as the funds are long a lot of corn. When the market is down you can find plenty of bearish stories.
Have a Safe Day!