We have a positive start to the week with prices up in corn and soybeans. Rumors that the Chinese were sizable buyers of US soy/grain late last week are adding to hopes for additional sales to China this week.
The stock markets are being helped to those new all-time highs on news that the FDA has approved and will expand their blood plasma treatment program in an effort to fight the COVID-19 outbreak. The announcement came as Republican’s kick off their parties convention and Federal Reserve’s Jackson Hole economic conference. Both will be heavily scrutinized for any signs of policy changes.
Traders will be watching closely to see if corn and bean futures are able to penetrate last week’s highs with rains for much of the Corn Belt in the forecast for later this week. For the first time ever it looks like two hurricanes (Marco and Laura) will make landfall in the Gulf at the same time. This will provide widespread chances for meaningful rains across much of the central US. The rains will go a long way towards stabilizing the crop condition ratings.
The bulls will do what they can to maintain upward momentum on prices heading towards the end of the month and the start of harvest. Be on the lookout for late week selling should the rains materialize.
Have a Safe Day!