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Hot and mostly dry forecasts push markets higher
Forecasts for hot and mostly dry weather to continue into mid-July helped push corn and soybean futures higher this morning.
Allendale market analyst Rich Nelson thinks the corn market has more upside potential.
“We have looked at four other years with this type of set-up in terms of a changing forecast on June 30th, when the initial discussion point really got the market’s interest—and we saw in those years the average summer rally would imply, in this case, around 3.70 for December futures,” Nelson says. “So roughly about 13 to 14 higher from the current trade.”
Nelson says traders will continue to remain focused on weather maps this week as they try to decide how much weather premium should be added to the markets.
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