Stronger markets this morning as the funds pour into the commodities. Overnight CZ18 made new contract highs and SX18 is on the cusp of making new highs. Wheat and Soybeans have been the catalyst for the commodities as US weather in the wheat growing regions are forecasted to be hot and dry. Soybeans have been stronger as traders are confident that China will resume buying US soybeans despite President Trumps comments the last few days.
Weekly exports were low for corn at 33.6 mln bu of old crop compared to the ten week average of 39 million. Soybean exports were terrible at -5.1 million bu. due to sales being cancelled. Despite the poor week, both commodities remain above the USDA projections for this time of year.
World and US weather will be the market movers the next couple days as traders take us on a wild ride higher or lower with each weather report that comes out. The best thing producers can do in a weather market is to make small sales on rallies and have firm offers in above the market. We see this type of trade every year and know that the markets will head lower before the weather changes and we realize sales should have been made. Don’t let a bullish mindset keep you from being profitable!
Have a Safe Day!