Supportive outside markets and dry weather in South America continue to push grains higher. March Corn finished 12 cents higher at $6.58 ½, March soybeans finished 19 ¾ higher at $12.27 ½, and March wheat up 4 ¼ at $6.57.
Argentina missed much of the rains expected over the weekend AND the forecast is calling for another 8-9 days of net drying. Southern Brazil is also looking at poor conditions and is contributing to the strength today. The Mid-day weather was left mostly unchanged. This combined with sharply higher outside markets were the main reasons for the sharp rallies in grains.
The Dow Jones futures were up sharply on positive economic data out of China. We did see a huge jump in the price of crude oil today on the economic news as well as threats made by Iran to close the Straits of Hormuz. This helped the market keep corn supported as well.
Grains hit the highs of the day in the first 5 minutes of the trading session. March corn touched the 100 day moving average of $6.63 ¾ and held resistance from there. March soybeans are getting close to their 100 day moving average of $12.57 ¼.
We may see first-of-year buying continue to support the market this week. Until we get to the January 12th report grains may also continue higher as the market tries to price in more risk premium. Much of this will depend on the weather in South America. If you have any questions, please give your EHedger broker a call. Happy New Year and have a great week!
Chart: March Corn
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