All About Weather as Grains Jumps, Corn at Highs Since 2016Agricultural commodities are trading higher on Tuesday as investors are digesting wet weather. Corn is trading at highest since 2016, while soybeans and wheat are rallying to multi-month highs.
“There is no way. These fields are soaking wet. This is an old fashioned weather market. It is all about acres and when the rain will stop.”
Michael Seery, president of Seery Futures, said that to Reuters earlier today when he was speaking about the delays in planting that is putting the whole agriculture season in jeopardize.
So it is true, grain markets are rallying on Tuesday after severe storms are hitting the US midwest as well as drought problems in South America.
“They are not going to get in the fields,” Seery added. “There is no way. These fields are soaking wet.” Markets reacted with worries and prices of soybeans, wheat and corn rallied on Tuesday.
Soybean prices broke above 8.350 and trades as high as 8.482, its highest price since April 30. Corn extends rally and smashes the 4.000 area to trade at near 3-year maximums at 4.121.
Wheat broke above the 200-day moving average at 4.855 and jumped above the 5.000 area to trade as high as 5.021, highest level since February 15.
Significant delays in planting season
Seery seems to be right as the numbers released by the US Department of Agriculture give him the reason. Speculations that Tuesday’s weekly crop progress report will show more delays in grains planting is underpinning prices for agriculture commodities.
Market is expecting that farmers were able to plant just 63% of their planned corn acres, while soybeans just reached 31% of intended plans, well below of the 90% average for both grains. Also, forecast services are anticipating that more rains will hit the midwest in the next days.
Soybean prices jump to May’s highs
Prices of soybeans are rallying on Tuesday as investors are anticipating a problem with supply amid wet weather that is delaying the planting season and speculations that the crop won’t be finally planted.
Soybean jumped over 3% on Tuesday to break above the critical 8.350 level and to trade as high as 8.482, highest level since April 30.
The unit is now trading 3.32% positive on the day at 8.462 as it is now testing the 8.500 area. Above that, the oilseed will test the 50-day moving average at 8.570 and the 200-day moving average at 8.700.
Wheat above 5.000
Prices of wheat are rallying for the second trading day in a row amid wet weather. On Tuesday, wheat jumped over 3% to break above the 200-day moving average at 4.855 and to test the 5.000 area.
Wheat is now trading at 4.967, 2.82% positive on the day. Resistance is identified at the mentioned 5.000 level, above that, check the 5.200 area and 5.250.
Corn jumps to near 3-year highs above 4.000
Corn is one of the grains with the most spectacular rallies in the agricultural markets with over 4% gains in a single day and prices not seen since 2016.
Prices of corn are extending gains on Tuesday after the grain rallied 4.15% to break above the 4.000 area and to reach fresh highs above 4.120, highest levels traded since June 2016.
It can look very improbable now, but corn is now heading to test its long-term double top at 4.360, tested on July 2015 and June 2016. Above that, 4.560 and 4.750 are the levels to watch.