Frost Alert!!
Morning weather forecasts put cold air into the 10 day outlook with Sept 24-26 targeted with high 20's in northern belt areas of the Dakotas, Minnesota, and Wisconsin. Early forecasts also had low 30 degree weather in Northern Iowa and Northern Illinois. With this information, corn was up a dime and beans 30-40 higher. The noon forecasts started coming in around 11:30 with some predicting much colder and much more widespread cold temperatures.
The noon run had widespread freezing temps as far south as Missouri with even areas like Memphis TN getting into the low to mid 30's come Sept 24-26. Upon news of this colder forecast, funds began a massive short covering as it is expected they bought between 20-50,000 contracts of corn and up to 15,000 contracts of soybeans. Corn hit limit up of 30 cents for 5-10 minutes before finishing up 28.75 while soybeans popped up 67 cents before closing up 51. Farmer selling in the market was noted but not enough to offset the aggressive money managers who saw Dec 09 corn trade above it's 50 day moving average for the 1st time since early June.
Watch the extended weather forecasts for direction the rest of this week.
Scott Meyer
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