Back and forth on weather
Corn and soybean futures pulled back yesterday as a wetter midday forecast called
for more rain next week and pushed prices lower before they rebounded a bit but
still finished double digits lower. This illustrates how much these forecasts can push
the markets around in a weather market. 10 cent moves just are not what they used
to be and are now more of a normal move. The overnight models turned back drier
in the 6 to 10 day and prices moved higher accordingly. We expect traders will want
to own the market over the weekend considering the hot weather could send futures
higher on Sunday night open. We have the June Wasde next week and expect a
decent trim in the Brazilian corn crop from the current 102 MMT. We will dive into
more of the numbers next week.
See attached report for more information on outlooks, technicals, and weather updates.
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