La Nina sends grains through the roof
La Nina's in the driver's seat for the grains Tuesday, and if the opening prices are any indication, it's going to be a bullish ride.
March corn started the day 9 3/4 cents higher at $6.29 1/4 per bushel and March wheat started 8 cents higher at $6.30, according to Barchart.com. January soybeans, tracking the South American weather situation the closest, opened Tuesday 19 cents higher at $11.82 per bushel.
The hot, dry weather in Brazil and Argentina has the trade's attention big-time Tuesday. And after a 3-day weekend and not a lot of change in the weather down south, it could make for a very bullish day Tuesday.
"The effects of dry weather in Rio Grande do Sul began to be felt in soybeans. Water deficiency affects the early development of plants and seed germination. These stages represent 94% of the total area to be sown in the state, 4.1 million hectares," says Agriculture.com Marketing Talk contributor agmr. "The rest is waiting for rain to be able to be sown. The losses are not yet measurable. However, in the Northwest, producers feared the worst."
The upward momentum could continue all week, say Agriculture.com Market Analysts Ron and Sue Mortensen, especially as we near the New Year's Day holiday weekend, when the trade will again take a 3-day weekend break that will see that focus on the La Nina situation in South America sharpen further.