The onset of summer brings with it the prospects for a weather rally. That was the case in early July, when a bout of hot, dry weather prompted grain prices to move moderately higher.
But in recent days, the rally’s momentum has sputtered. Traders largely shrugged off two rounds of large corn and soybean sales to China on Tuesday and Wednesday as they look at rainy weather and milder temperatures for much of the Midwest moving forward.
Last Friday’s World Agricultural Supply and Demand Estimates (WASDE) report from USDA hasn’t done any favors for grain prices lately, either.
Today, we sat down and talked through many of the variables that are responsible for an uptick in price volatility this week.
Listen to the latest Midweek Markets podcast for July 15, 2020.