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Corn, soy markets poised for an early summer rally

An analyst says the grain market is setup for a seasonal rally.

 

Stewart-Peterson senior advisor Naomi Blohm says the corn and soybean markets tend to strengthen between mid-June and early July, depending of course on the weather.

“Now the market is set up, it’s very supportive, and I do think we see soybeans go and retest the highs from where they were earlier in the year.  I do feel that corn has the ability to work about 25 to 30 cents higher from where it’s at right now, but then we’re going to be at some major overhead resistance levels.”

She tells Brownfield December corn futures will struggle to break through the $4.50 level unless growing conditions deteriorate.

“It would mean bad weather here in the U.S., bad weather in China, and even dry conditions in Russia.  That’s the type of thing that could make the market move higher.”

Blohm says this could be a good time to get current on old and new crop sales, and recommends buying puts on grain that hasn’t been priced.