Many of the major commodities are clawing their way back into the green during the trade on Tuesday to follow a strong showing at the start of the week.
Soybeans traded a nickel higher after $0.20 per bushel gains Monday. USDA’s national crop condition report shows continued deterioration of soybeans. From a historical perspective, bean conditions are at their lowest since 2015, and the lowest in Iowa since 2013.
Some analysts like Joe Vaclavik, president of Standard Grain, say summer weather is pushing prices higher.
“Overall, the futures market has rallied more than $1.30 after bottoming on June 23,” said Vaclavik. “We’ve got some threatening weather forecasts for a lot of the Corn Belt as we move through July—hot and dry for the western Corn Belt and the eastern Corn Belt had some early season weather problems, so we’ve got some crop problems.”
He said the reason for the “sharp rally” is a combination of weather problems and a “massive fund short.”
Monday’s crop progress report from the USDA showed 62 percent of the soybean crop is rated good to excellent, down two points from the week prior.