Grains Open 15¢-20¢ Higher; December Corn Trades above $7/bu.
Jul 05, 2012
Grains are up once again this morning, with DEC corn printing trades above $7.00 and November soybeans trading up 38 1/4 cents to $15.13. Precipitation failed to hit key growing areas over the 4th of July holiday, and as a result grain futures gapped 15-20 cents higher on the open.
The first weeks of July will be critical to determining yield on this crop, as pollination is well underway in many states. Below is the 6-10 precipitation forecast from Planalytics good for July 10th - 14th. As you can see there are expectations for below average precipitation across the corn belt. Expect this rally to continue until we have rain falling in Iowa, Illinois, and Indiana where they need between 8-12 inches of precipitation to end drought conditions.
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