Today feels like your standard “Turnaround Tuesday” bounce across the grain complex. Our markets are rallying this morning aided by friendly outside markets (weak dollar, DOW futures higher). The funds have been selling off their positions for three days now and this higher market could be sign that the liquidation is coming to an end. To stage a small recovery we may not need the funds to come back and buy our grain futures, we probably just need them to stop selling them: fundamentals (lack of farmer selling, strong demand) could take care of the rest.
The crop progress report was out yesterday afternoon, nothing major to see there. Corn is 79% harvested while beans are 71% harvested (U.S.). As the harvest season slowly moves out of the way it won’t be long before all eyes turn to weather, namely South America (big, big acres means big, big potential). Weather in the U.S. also needs some attention. Noted ISU Cyclone meteorologist Elwynn Taylor said that we need approximately 16 inches of rain just to replenish soil moisture levels by Spring. After we get that 16” any additional rains received will then start to benefit the rivers and streams. If we do stay dry the market will eventually take note of that, for now it is just one more thing for us to watch.
Currently
Corn is up 4 to 6 cents
Soybeans are up 8 to 12 cents
http://www.fccoop.com/markets/information.cfm
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