Grain, soybean focus shifts to weather

National focus critical to big picture

Spraying soybean field Spraying soybean field

Corn: As is typical for summer, we need to watch each forecast update that is available. Any trader will benefit greatly from keeping an eye on national rainfall while limiting too much focus on any one area. Coming up soon will be pollination in the Southern Midwest where planting started very early. If we have a bias focus it should be shirted in that direction short term…Ryan Ettner
     
Soybeans: The moisture that has been moving through the belt seems to continue to hit the already moist areas and miss the areas that need it the most. We can see below why the trade is continuing to keep weather premium in the market. The drought monitor for this same week last year and this year look drastically different. The drought was worse in the Southern Plains but better through the rest of the belt compared to this year we are seeing drought conditions that are not as bad last year but are much more widespread…Cordon Sroka

Wheat: Monday's wheat inspections came in at a neutral 20.620 million bushels. This compares to last week’s 22.382 million bushels. Friday’s commitment of traders report showed that funds have started to build back their short positions. The report showed them short 11,131 contracts. Trade-wise Allendale is looking for the market to move into a sideways range. With weather concerns in the corn market as well as production concerns in the world the wheat market should find willing buyers on dips. Continued harvest activity will be limiting gains…Jim McCormick
 
Ryan Ettner is a registered commodities broker and grains analyst at Allendale, Inc. Cordon Sroka is a registered commodities brokerr at Allendale, Inc. Jim McCormick is Senior Broker/Manager at Allendale, Inc. Allendale is registered with the CFTC and NFA and is a member of the NIBA. www.allendale-inc.com

About the Author

Ryan Ettner is a registered commodities broker and grains analyst at Allendale, Inc. Steve Georgy is a Sr. Broker/Manager at Allendale, Inc. Jim McCormick is Senior Broker/Manager at Allendale, Inc. Allendale is registered with the CFTC and NFA and is a member of the NIBA. www.allendale-inc.com

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