Markets are slightly higher this morning with corn and soybeans both trading 1 higher.
Short covering may be the market mover to close out the week. I doubt the rally will go very far, but any rally is good news. Corn will have a tough time clearing initially 3.30 and then even more difficult at 3.35 ahead of the crop report that is next Thursday. The market has made a habit of dousing out the corn short covering before the crop report is released. The report next week will be bearish to corn again, with the absence of high ethanol use over the past month.
The weather is going to clear of rain until Tropical storm Cristobal makes landfall on Sunday. Rains will develop in New Orleans of up to 5 inches before moving up Monday and Tuesday into the Central US. Today’s model shows most of the rain covering from south of Kansas City, strait up to Des Moines and directed to Green Bay. The East looks to get less than an inch, where the west central belt can get as much as 2-3 inches, with isolated areas of 5 inches.
The temperature forecast looks a lot warmer for the next 14 days. Temps break down with the tropical storm moving in, but they slowly build back warmer on June 16-18th. This may be the beginning of another high pressure ridge.
Look for prices to remain depressed and trading in the 10-15 cent range we have seen over the last month. Producers should be actively selling cash and new crop corn in the $3-$3.20 range when/if it is obtainable. In my opinion we have 3 weeks for weather to move the markets higher. If we don’t see any major weather issues by the 4th of July the window will close and prices will start to head lower.
Have a Safe Day!