BLOOMINGTON – Weather continues to drive gains in the markets, as the trading week started off on a high note once again.
“It started here over the last few weeks with the Minneapolis wheat market rallying about three bucks out of that range we had,” explained Aaron Curtis of MIDCO.
Prices continue to be supported by warm and dry weather in the plains and northern Midwest – especially in the spring wheat territory of the Dakotas. That support spilled over into the corn and soybean markets.
“We continue to watch this weather forecast. If this high-pressure ridge that continues to keep moisture out of the Dakotas continues to stay out west, that’s one thing that concerns me,” Curtis said.
Also helping things out is the fact that corn and soybean funds continue to be on the short side. The trader’s report every Friday afternoon continues to confirm that corn and soybeans are hanging on to some short positions. Producers have been patient on selling old crop corn, waiting for a rally. Starting last Monday and continuing through this week, producers continue pricing grain.
Curtis believes basis would have a hard time “hanging in there” if the rally continues, because the end user continues to wait for the producer to move some of their grain.