Grain markets watch weather, but keep eye open for shocks

Hot spell breaks, but where's the rain?

Grain field Grain field

Corn: Other than weather, we need to constantly keep eyes and ears open for news we are not expecting. You never know when a new government regulation or a Chinese news story will cause violent market reactions while all our focus is on the clouds coming over the horizon. It isn’t often we hear someone who sold the top of the market because it usually comes when least expected. That means the best we can do is keep a close eye on every piece of news possible. This close watching of the market is just as necessary for bulls at it is for bears…Ryan Ettner
Soybeans: Excessive heat broke this past week as a cool front moved through a good portion of the grain belt. The relief from the heat did not bring much moisture. The two-week forecast did add additional moisture to the forecast. Several meteorologists have changed their forecast to more of an El Niño pattern which would bring more rain and a zonal flow. Remember, bull markets need to be fed every day…Cordon Sroka
Wheat: The price of wheat over the near term will continue to be dictated by the direction of the corn market. With the corn crop shrinking, the value of wheat as a feed ingredient is increasing daily. As the corn goes, so goes the wheat market over the near term...Jim McCormick

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.

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