grain belt gets more dryness
If you check out the 5-minute corn chart for overnight trade Monday night, you'll see a gradual and steady appreciation in price. The market closed just below 280. The extended forecast is calling for extremely hot and dry conditions in the most moisture deficient areas of the corn belt. By this weekend, a lot of predictions are in the triple digits. I'm watching this one closely, because you know that at the first sign of any appreciable moisture, this market will tank, but it also wouldn't take much to "scare" traders over the 296, 298 to 300 levels for the Dec contract. No one knows what will happen but it'll sure be interesting to watch it unfold.If the gains can be maintained and possibly expand today (Wednesday's trade) then the market may get excited about taking out the previous contract high in the 287 neighborhood. If that were to come to pass then the high 290s and 300 mark may not be far off.
November beans closed in the 640 area (again over night), which many people thought they'd never reach again. The may be something behind this bean market... it has failed to break since early in the year, which doesn't necessarily mean that it won't, but it's interesting that it's held on and is now, in fact, quite strong.
Gold is trading higher this morning. There is a certain feel in the marketplace that the very recent renewal of anxiousness is boosting some of these markets. How many farmers that sell corn off the combine do you think are expecting to get 280 for their deliveries for this year's crop? That's an important question to ask yourself. On the same token, another important question is: "how high is high enough."
posted by jared @ 3:47 AM
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