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.
As the weather patterns in U.S. and Argentina's crop areas continue to struggle, prices continue to rally on the futures markets.
We have a full-blown rally going on in soybeans, with South America having a growing crop in the fields.
With continued adverse weather in Argentina, it’s likely that soybean production numbers will need to be cut again in future reports.
Farmers have a chance to sell into a rally, for the first time in awhile.
Generally, a lower stock market will put pressure on all markets, especially during a correction as deep and quick as the recent one week break.
For most of the other markets like wheat and corn, the best sales opportunities will likely come during the growing season of the U.S. crop.
Despite a cut in exports, a hike in ending stocks, and an increased Brazilian production estimate, the soybean market is rallying.
The USDA January report Friday was mixed for the grains, with mostly neutral numbers for corn.