Home / Markets / Markets Analysis / It's still weather

It's still weather

Agriculture.com Staff 08/10/2007 @ 1:23pm

As of this writing, December corn futures have rallied 11 of the last 12 days. Most impressive this week was Monday's steady to higher finish after dropping 10 cents.

Follow-through buying on Tuesday and then again on Wednesday was also impressive. Short covering, as well as establishing new longs, helped to give prices a boost. The market has dealt with rainfall in parched areas of the Corn Belt, while at the same time, dealing with temperatures climbing to 100+ degrees in the southern half of the Midwest. Some of the corn crop (as well as beans) continue to struggle with adversity. World weather events continue to encourage traders to stay on the long side of the wheat market, as prices rise to their second highest all-time level.

Bottom-line, if the market were confident that the corn and soybean crops were getting larger, prices would not have rebounded the last couple of weeks. Soybean futures made a very important technical breakout on Wednesday. Follow-through buying is needed to keep bullish ideas alive.

Expect volatility. Both bulls and bears can passionately argue their points. Both could be right. However, if you are a producer who is holding too much inventory from last year, recognize that the window for weather affecting corn will close soon. For beans, the most critical weather will occur throughout August and early September.

For now, it is still a weather market, and while one can make assumptions on this year's crop, the jury is still out and will likely be out at least for another month. Use a well thought-out strategy to minimize risk.

If you have any questions or comments, please contact Top Farmer at 1-800-TOP- FARM, ext. 129.

As of this writing, December corn futures have rallied 11 of the last 12 days. Most impressive this week was Monday's steady to higher finish after dropping 10 cents.

CancelPost Comment
MORE FROM AGRICULTURE.COM STAFF more +

Farm and ranch risk management resources By: 07/07/2010 @ 9:10am Government resources USDA Risk Management Agency Download free insurance program and…

Major types of crop insurance policies By: 07/07/2010 @ 9:10am Crop insurance for major field crops comes in two types: yield-based coverage that pays an…

Marketing 101 - Are options the right tool… By: 07/07/2010 @ 9:10am "If you are looking for a low risk way to protect yourself against prices moving either higher or…

MEDIA CENTERmore +
This container should display a .swf file. If not, you may need to upgrade your Flash player.
Chainsaw Accessories
Agriculture.com

FREE MEMBERSHIP!

CLOSE [X]