Both the corn and wheat markets took it on the chin today as the dollar continues to climb higher and crude oil dropped back. Pressure from warmer weather in the U.S. Midwest that is seen boosting development of the corn crop, leading to potential bigger crop production, but strong soy futures limited losses. Funds continue to focus on the recent private analyst forecasts that if realized would make this year the second largest corn crop in U.S. history.
Tightening old-crop inventories in the face of strong domestic and export demand served as the rallying cry for bullish soybean traders. Old-crop contracts led the upward assault, with reports of processors scrambling for supplies keeping sellers on the run. Soybean traders also grew concerned today due to hotter weather expected over most of the corn belt, which could pose a threat as soybeans began setting pods.
Chris Spurlock
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