I hope everyone had a great weekend. Our weather forecasters spent their weekend simply extending the previous models out by a couple days: hot & dry weather. So, with that, at 7 p.m. last night our markets rocketed higher and are still trading firm this morning. Those who were holding onto a few short positions (and maybe hoping for some rain in the forecast?) appear to be heading for the exits.
For perspective on price levels today: November soybean futures have made new contract highs this morning while December corn futures have rallied all the way back to a level they only spent THREE DAYS IN TOTAL trading above earlier in May. Safe to say that a weather premium is being built into our new crop futures markets and producers should be paying attention. The next couple weeks are going to be a rocky ride with a ton of opportunity (and risk, of course).
Looking around the rest of the trade, there isn’t much out there that can compete with the weather headlines. This afternoon we will get another look at our crop ratings; you have to think they will slide back a bit with some of the weather we’ve had, but it is still pretty early in the season. We do also of course have the USDA’s S&D report out this Thursday morning, which will take center stage, but once we get through that we likely go right back to trading weather.
Corn is 18 to 25 cents higher
Soybeans are 25 to 35 cents higher