r e l a t i v e // strength

Iowa "feels" incredibly dry...

... but that doesn't mean it is. Moisture deficit readings may not indicate the same, but parts of Iowa feel very, very dry. The coverage of rain in the Sioux Falls, SD area have been decreased; however, the number of days that have potential for moisture have increased since Friday's trade. If we do see some moisture through the corn belt this week, then the seasonal slide may begin. Should dryness persist and jitters remain high, then we could take out the previous high and go for the next resistance threshold. In any event, this trader believes the following week to be key.

With soybeans having their key period in August, any dryness now may overflow into that key window and buoy the corn along with the beans. It's been said that top pickers get their hand slapped. This is a good one to wait for some degree of confirmation. As we saw last week with dryness one day and a little rain the next day, there is a lot of room for whipsawing volatility. Buyer and seller beware.

posted by jared @ 7:16 AM