Grains rallied right out of the gate today and ended up finishing sharply higher. December corn finished 21 ¾ cents higher at $6.79 ¾. September wheat finished 42 ½ cents higher at $7.14 ½, and November beans finished 21 ½ cents higher at $13.79 ¾.
We are trading a full weather market right now and grain prices have certainly benefited from this 2 –week forecast. On top of this we have had some technical buying as we have blown through many of the moving averages over the last couple of days. The comments made by Fed Chairmen Ben Bernanke today were only adding fuel to the fire. The potential for the market to see another round of quantitative easing pushed the dollar sharply lower and gold to a record high today.
Even though this should have a positive effect on all things dollar denominated, yield is still everything for grains. Right now the market is trying to forecast yield and how the weather plays out over the next two weeks which will be the determining factor. If over the weekend they take out the ridge and add rain to the forecast we could see December corn back towards the $6 level next week. If weather remains hot and dry in the 2 week forecasts, we could see the market come back to the contract highs. I hate to be overly simplistic about this but weather is going to be the biggest factor right now. Now is a good time to double check your AMMO to make sure you are covered. Please call your broker if you would like to go over this.
Have a great rest of the week!
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