AM Comments 08/04/14
Monday, August 4, 2014, 7:08 AM
Submitted by: Dustin Weiner
The weather models are bouncing around a bit this morning, but most of them are still calling for slight chances for rain early this week and better chances later this week. There are spots in the belt that look like they may not get as much as we thought Friday which had the grain markets moving higher last night. The extended forecast remain cool, the precip potential is projected to be normal in the western corn belt while the eastern corn belt is projected to receive above normal precip.
This afternoon’s crop ratings are projected to drop a bit for both corn and beans – the story being that the dry weather has knocked a few points off the good-to-excellent ratings. This could also be why the market has found some buyers overnight.
Many in the trade are calling the action we saw overnight nothing more than a short-covering rally. If we are in a ‘rallies are meant to be sold’ type of market then this little upward swing in prices should be rewarded with a few sales from the producer, especially the producer who has a record or near-record crop brewing out in the field…
Corn 2 to 3 cents higher
Soybeans 11 to 14 cents higher
Have a great day!