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Jim Wyckoff

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It’s a Full-Blown Weather Market in the Grains!

May 28, 2019 by Jim Wyckoff

Corn futures Tuesday hit a nearly 12-month high, with wheat hitting a three-month high. It’s a full-blown weather market in the grains, and it’s not even June yet! Soggy U.S. Midwest weather, and more of the same in the forecast in the next week, will keep many U.S. farmers out of their fields and continue to keep the seeding of corn at a pace that is the slowest in recent history. As each wet day in the Corn Belt passes, lower production levels for corn and soybeans are more likely and even highly probable now. If soybeans and corn continue to rally, wheat will, too. Part of the gains in the grain market just recently are due to the large speculative “fund” futures traders getting squeezed out of their short positions that were record large just a few weeks ago. At some point, if not already, those funds will likely move to the long side of the grain markets. Stay tuned to my daily reports to get those early clues on price “turns” or acceleration in the grains.–Jim

Filed Under: Blog News, Jim's Morning Report, Uncategorized

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