Strength continues into night session

Overnight- Corn, soybeans and wheat futures extended yesterday’s rally into the overnight session.

Now the question is what the big driver of this rally is. We have a few possibilities.

Heavy rains hitting Argentina during harvest causing delays and damage to crop.

Dry long term forecasts after this weekend for much of Brazil. There are signs that the dry season will start early this year affecting overall corn production for the 2nd season crop.

Funds trimming short exposure as we move towards the acreage report and US planting season.

It is likely a combination of all these factors and the Argentine floods could be the straw that broke the short traders back.


We had a nice rally off the lows earlier in the year and we need to look closely at these levels to put some hedges in place for a percentage of production. We realize some of you will be locking in negative margins, but you must analyze the market you have not the one you want. NFC Grain Comments Options -new (25)

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