Aug. 31 was a big day in the markets, says Chip Flory, host of Market Rally Radio. September corn prices ended the day just over 12 cents higher and September soybean prices shot up 13 cents.
“We’ll have to prove [these prices] tomorrow,” Flory says.
“What a difference of one trade can make,” notes FarmLead’s Doug Kirk on the Aug. 31 episode of Market Rally. “The market likes natural pivot points.”
The pivot points include the end of the month and an upcoming three-day weekend.
If the markets close higher tomorrow and Tuesday, Kirk says, it could be a sign of a change of tone.
The grain markets are looking for a story, says Kirk, also an east-central Illinois farmer.
“We need market participants to come back in and drive market volatility higher,” he says. “We hope that volatility comes back into play so we as producers can have a shot for higher prices down the road.”
What could move markets higher? The weather.
Below to much-below temperatures are forecast though much of September for major crop-producing states, Flory notes. After leading the Farm Journal Midwest Crop Tour, Flory says there are some crops that need every bit of September to achieve their yield potential.
Listen to Flory and Kirk discuss markets: