One day after grain prices were restrained by heavy outside selling, new-crop contracts of corn and soybeans posted double-digit gains, joined by modest gains in winter wheat. September Dow Jones futures are trading up over 600 points Tuesday afternoon, regaining composure after being spooked by rising coronavirus infections Monday.
Overall, with no outside pressure we resumed building a weather premium in the grain markets. The hot, dry and ominous forecast for the next 10-14 days is going to create more problems in the Northwestern Corn Belt. Minneapolis Spring Wheat finished lower on what could be deemed profit taking at such high price levels. We are seeing the worst crop ratings since 1988 in spring wheat.
Hogs were strong with more ASF worries in China and Europe. Cattle just seemed to be locked in a sideways range with no end in sight moving forward.
Farm and Ranch Director Jesse Allen has our closing report: https://lightningstream.com/ajax/GetODFile.ashx?call=MIDWEST&fileid=1406
Also, more analysis with Jesse Allen and Jim McCormick of AgMarket.net on today’s episode of Market Talk below: