Grain prices have struggled in recent days, showing sensitivity to a number of factors at play right now, including ethanol production, weather forecasts and even the health of the financial and energy sectors.
On a more upbeat note, ethanol production has crept steadily higher for eight consecutive weeks, which is a much-needed trend for corn demand. COVID-19 recovery, in general, has been a boon for the stock markets and energy prices throughout much of June, and grain prices have scratched out some meager gains this month as well.
But favorable weather forecasts for the rest of June and early July aren’t doing prices any favors. The table is already being set for another year with yields above trend lines. If that happens this fall, the market could be bracing for record-breaking corn and soybean crops in 2020.
Add it all up, and what are the prospects of a rally later this summer? Listen to the latest Midweek Markets podcast for June 24, 2020.