Grain markets finished sharply higher today, it’s not only our conditions being dry but there is not much rain in the forecast causing additional concerns.
Grain Market News
U.S. Topsoil Moisture
U.S. Corn and Soybean Topsoil Moisture
U.S. Drought Monitor
Virtually the entire U.S. corn and bean belt is in some type of drought except for portions of North Dakota, southwest Minnesota, and a portion of northeast Kansas.
4-Week Change in Drought Monitor
Anything in yellow or tan is where drought has worsened and anything in green or blue is improving.
Drought has certainly improved in the central and western plains but across the majority of the belt drought conditions have gotten worse.
7-Day Observed Precipitation
Over the last 7 days we got rain in portions of Indiana and much of Ohio which is an area that is benefiting from the rains.
From southern Minnesota into Iowa and northern Illinois we have gotten little to no rain.
This area is getting extremely dry with crops under stress.
30-Day Precipitation % of Normal
We have a lack of rainfall in the key areas of the U.S. corn and bean belt.
The dry soil is allowing the temperatures to really warm up in the afternoon.
Yesterday we had temperatures into the low 90s in portions of western Illinois and eater Iowa.
This shows high and dry across the belt.
We are hoping some showers can work into the western belt into the weekend.
7-Day Precipitation Forecast
The forecast shows rain through the central and northern plains and also in the southern belt down into the delta and southeast.
Unfortunately, from portions of Minnesota, Iowa, Illinois, Indiana, and the Great Lakes regions there is very little rain in the forecast for the next week.
Temperatures are similar to yesterday with above normal temperatures in the 6-10 and the 8-14 day.
We could maybe get some better precipitation in the 8–14-day forecast.
May Corn Chart
Corn prices exploded to the upside, that likely allowed short covering as well.
As of yesterday, the funds were net short 44 thousand contracts of corn in a market that is accelerating to the upside.
The funds are likely trying to get out of those short positions.
Technical indicators were over bought but the market surged to new highs, breaking out above our downward trend line, matching the high posted in March at 5.75.
The next target would be close to $6.
May Soybean Chart
Soybeans exploded to the upside with the warmer temperatures.
We took out the highs from May at 12.85 leaving something in the $13.25-13.38 level as the next level of overhead resistance.
May KC Wheat Chart
Wheat prices made a move to the upside, closing sharply higher.
We took out the consolidation ranges we have been in for about a week.
The next level of overhead resistance will be at 8.47.
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