The past several weeks have seen solid rallies in the grain markets that have not been seen for many months. Those rallies were driven mostly by dry weather concerns in Argentina that boosted soybeans, and dry weather worries in the U.S. Plains states that rallied the wheat market. However, weather-inspired rallies generally peter out before the actual weather damage is fully realized for the crops. Futures traders tend to factor in expected market events before the come to conclusions. This week will be critical for the grain markets. For the rallies in the grains to extend, the bulls need to step up this week. If they don’t, then it will likely be several weeks of sideways to lower price action ahead of the U.S. planting and growing season for soybeans, and U.S. harvest for wheat. Stay tuned!
