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Weather forecasts fuel another market rally

Forecasts for continued warm and dry weather are fueling another rally in corn and soybean prices.

Market analyst Don Roose, president of Iowa-based Roose Commodities, says $4.50 corn is not out of the realm of possibilities, if the weather stays hot and dry.

“I think first we have to see if we can through the $4.17 on December. Then I think the sweet spot is going to be $4.20-$4.30,” Roose says. “If things stay inflammatory on corn, maybe you can shoot up through the $4.50, but I think that’s a tough zone.”

Rose says 11 dollars beans are also a possibility.

“We could challenge the old high of $10.50—and if the weather stays with us, maybe $11.00,” he says. “But those are going to be tough areas again. And remember, this market is as good as the next weather forecast. So we’re talking positive today, but we could be talking negative tomorrow.”

Roose says the bullish enthusiasm is also going to be tempered by the very large stocks of corn and soybeans.

AUDIO: Don Roose