Markets are higher as we start the week with corn up 4 and soybeans up 18.
The forecast for South American weather is still hot and dry this morning. The next 10 days will see limited rainfall in Southern Brazil and Argentina. The long-range forecast has a breakdown of the high-pressure ridge, temps will cool down some but not totally go away. This looks like a significant change for temps in Argentina, but there isn’t very much rain developing.
The current forecast is bullish for South America, but the long-range has a chance for a significant change. This isn’t a forecast the market would normally rally on. The longer the Funds get in beans, the more the volatility can increase. The funds are very long corn positions, which make that market very crowed if they must move to the exit door.
South American weather will be the driver as we close out the year and head into the January crop report. Weather can be a very tricky market mover as we have all seen in the past. Forecasts move the market long before the actual weather which increases volatility. I would suggest being proactive in any old and new crop corn and soybeans sales you have to make; this weather will be changing.
Have a Safe Day!