This information is provided by Archer Financial Services, Inc. 800-933-3996.
The grain markets were able to shake off some early week weakness to rally to close the week nearly 60¢ higher in September corn. The bearish stocks and acreage data of just over two weeks ago seems like ancient history at this point.
December corn was able to close the week nearly 35¢ higher than it did the night before the release of that June 30 data. The biggest feature this week, as it is every July, was weather. However, the grains also benefited from strength in the precious metals and weakness in the U.S. dollar.
There is no question that the forecast for the Midwest is concerning. The ridge that has been present over the Southwest for most of the year now looks to be moving, at least temporarily, over the Midwest. This is especially concerning as the pollination period is running generally behind normal.
The key for this market will be the position of the ridge in one or two weeks. At this point, very little crop damage has occurred, yet the corn market has rallied over $1 from its lows of just two weeks ago. The position of this ridge in two weeks will determine whether the market gives back the recent rally or is able to break 25¢ to 50¢ above its contract highs. It is important, through your marketing plan, that you are prepared for either scenario.