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| Corn and beans both make new lows following yesterday’s friendly price action. Despite wheat being down hard early, it managed to rally back as yesterdays key reversal remains in place.
We were lower today due to technical and fund selling which stemmed from a lack of fresh news in the market for the bulls to chew on.
Weather in South America isn’t a problem right now. Soybean harvest and second crop corn planting both continue to move along at an above normal pace.
It's still too early for US weather to have an impact, but it is starting to look like winter is coming to an end. We have had the warmest winter in 132 years and this warm weather looks to continue.
Take a look at how this winter shapes up with history. Warmest on record. (1st pic)
Now with this, yes this could lead to early planting because there will be little frozen ground and rain will absorb better.
However, on the flip side, the lack of snow is a negative factor for soil moisture.
Take a look at how dry this February has been. For the I-states, it's one of the driest on record. (2nd pic)
Lack of soil moisture is already starting to show, the snow was supposed to help this. (3rd pic)
So far this month temperatures have been anywhere from 20 to 30 degrees warmer than normal. (4th pic)
What if this trend continues into the summer?
They are called "futures" markets for a reason. They price in things that will happen in the future.
Take last year for example. We raised a great crop, but even so we still got that mid-summer weather scare that rallied us substantially in a matter of weeks.
Don’t tell me we won’t be getting at the very least a weather scare, whether the actual damage comes to fruition or not….
Read todays update where we go over the drought talks, Brazil in 2016 vs now, managing risk & more
Read Here: https://txt.so/ApjvLy
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Market comments - new lows and drought talk
