We used to think a 7% correction lower meant a potential top in the market. But not this year.
Overall, it’s surprising how good the crop is rated in most categories, considering the unusual spring we’ve had.
Weather is becoming more bullish, too, as recent rains were disappointing in coverage and amounts.
Weather and trade talks are the main drivers of the soybean market.
It’s hard to plant when soil temperatures are so cold and also wet.
Finally, after a horrid March and April across most of the U.S. Corn Belt, May has arrived along with some farmers out in the fields.
But with the right weather, the majority of the Corn Belt can plant most or all of their crop in 10 good planting days.
Now the new winds of change are at hand, namely a full-fledged bull market in grains.
Ray Grabanski says that grain prices went up too fast from the January bottoms and were in need of a correction before we actually start the growing season.
Looking at current charts, both the corn and wheat charts still have an uptrend intact after a minor correction in corn and more deep correction in wheat.