Overnight the markets were softer but have opened 3 higher in corn and 2 higher in soybeans. I look for an unchanged to slightly higher close today as traders head into a 3-day weekend with the holidays.
The Funds are taking notice of the weather in South America and buying. The bean position can get a lot larger in coming weeks as last year they peaked out at 270,000 long contracts with a 16-dollar price on January 12th. If South American weather stays bullish, this could go for a while. Corn hit 6 dollars yesterday but struggled to get there and will be difficult to keep there without support from the bean markets. The Funds are long a lot of corn!
The forecast for South American weather is like yesterday’s run with very heavy rain in Northern Brazil. Some areas are going to see a foot of rain in the next week. Southern Brazil and Argentina look to be dry with almost zero chance of rain in the next 10 days. This is the forecast they trade, and it is still bullish this morning.
Reminder there are no markets on Friday!
Have a Safe Day!