Last week July Soybeans opened at $13.83 per bu. and closed the week at $14.42½. In July Corn we saw an open of $5.84¾ per bu. and a close of $5.91.
I will tell you that I am shocked by the weather, but not surprised. Why? Back in 1999 I was speaking to a customer in Ottawa, Canada who was a professor at a university there. Here is the shocking part. While on the telephone with this person, he told me to watch out and be prepared for 2012. He said I would see an unusually warm dry winter, which already happened, and America will see a drought like it saw back in the 1930s; he said heard of the “dust bowl.” His reasoning for this was planetary alignment. Alignment we have not seen since the 1930s and the “dust bowl.” I always had that in the back of my mind, and all I have to say is thank goodness for that.
In the daily charts below, you can see Soybeans in a weak trend with ADX at 24.75 but rising and DI+ is over DI-. MACD is bullish and Stochastics are overbought. On the daily Corn chart you also will see a weak trend with ADX at 19.8. MACD is bullish and Stochastics corrected from overbought territory last week, but are on the rise especially with today’s price action.
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