More years than not there is some degree of a weather market scare that develops in the grain futures markets in the summertime. Well, it’s July and a weather market has quickly popped up in corn and soybeans. Drier and hotter weather is forecast for the Corn Belt right during the critical pollination phase of the corn plant’s development. Weather markets in the grains are many times volatile and do not last long. December corn early Monday gapped up on the daily chart today, hit its 50% rectracement of the downdraft that started in mid-June to the July low– and promptly backed way off. Technically, it’s now going to be real tough to add more gains in corn in the near term.
Stay tuned! —Jim Wyckoff