Weather, speculative buying move grains

Corn: When the funds come in with active buying for just a short time on the opening, it is cleanup buying, which is commonly a sign that they are done for a while. This would typically mean that you can expect them to be calm for at least a couple weeks, but with the dollar continuing to drift lower, it is possible it would only be a few days. Either way, it offered the speculators a chance to get active with selling the old crop corn while the new crop slowly drifted lower on an improved forecast.

Monday's noon weather run took rain out of the forecast for later this week. It still calls for rains Thursday and Saturday but significantly reduced the amounts. Most important, the forecast was drier for the wettest areas of Missouri, Southern Illinois and Southern Indiana.

Spreaders and speculators made old-crop corn move violently Monday, but if we keep our forecast on December, it was a fitting move for the new forecast. This now suggests that planters should be out and going right now with more expected mid to late next week. Try not to get caught up in the old-crop speculation and focus on new-crop direction.

Right now the December chart does not look bad but could stumble quickly with each additional planter that is out in the field. Lastly, in regard to the funds, we have not seen them significantly long for 12 straight months in this market. They started actively buying this corn in July of last year…Ryan Ettner

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