Weather forecasts front and center in the grain trade here at midweek, but U.S. and European weather models disagree going forward. Bottomline grain analysts suggest that commodity fund traders have been looking for any reason to go long in this market, and weather was the reason this week. Now, there’s a catch.
European weather models show a hot, dry August ahead. Now, they predicted a hot, dry July a month ago this time, and of course, July weather was much more moderate. In fact, commodity weather group here called that European forecast silly.
We do see increased farmer selling of corn with December over the 458 level here early week. Keep in mind, history shows December corn can top 7 to 10 days after the 4th of July. This is the bottom-line report.
We think November soybeans can target mid-May highs above 1215.
Audio Reporting by Mark Oppold for Southeast AgNet.