Grains higher on growing weather concerns
Corn and soybean futures have managed early gains in Wednesday trading, while the wheat pit's drawing weakness from an expected drag on the corn market to dip into the red.
Nearing mid-day, December corn is 4 3/4 cents higher at $4.52 per bushel, while November soybeans are 3 3/4 higher at $12.31 1/2. December wheat is 2 3/4 cents lower at $6.38 3/4 per bushel.
A mostly dry weather forecast for the next 10 days in the Corn Belt is behind the upward drive in the soybean pit, traders say, though it was a better weather outlook on Tuesday that sent corn through the floor. Farmers say, however, the crop weather is far from good, and the implications of ongoing dry weather after a cool, wet spring will likely be growing in severity.
"We will still have plenty of reason to run the combine through the fields this fall, but don't be expecting us to bring the yields up to trendline too much. I really don't have to travel very far to find prevented planting acres around here, either," says Agriculture.com Marketing Talk veteran contributor Mike central IA. "Personally, I hope a lot of traders get caught with their pants down on this one when the combines do start rolling. Maybe then they won't be so gullible in the future when the bears show up."