This is an unusual summer trading season, indeed, as the past month it’s been all about politics, government policy, and trade rather than weather.
The only reason possible for a sharp sell-off at this time is the trade negotiations that are going on or, maybe more accurately, not going on.
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.