Commodity markets continue to move higher this week due to wet weather and planting delays. Despite a brief break in the clouds, the short-range forecast continues to indicate a wet weather pattern.
The latest USDA Crop Progress Report shows it's the slowest start on record for corn planting in Illinois, Indiana, and Ohio. Nationally, it's the third slowest start. Only 1993 and 2013 were slower.
The weather-driven market movements in grains are helping pull futures prices off multi-year lows, but analysts caution that demand is still an issue.
Joe Vaclavik of Standard Grain told AgDay, "Demand for all these crops-corn, soybeans, and wheat-have been sluggish and lower prices. What is this rally going to do for demand? It's probably not going to be good. Exports have been sluggish across the board. We're already competing with large South American crops. We've got a currency disadvantage. We've got African swine fever in China, so big picture here, we've still got a lot of very negative fundamentals, but short term, it's all about the weather."