Corn Futures/Soybean Futures Extend Gains on Expanded Drought Issues

Soybean meal futures have reached a record high, and corn futures have reached 10-month highs on the outlook an expanding drought will drastically cut supplies from domestic crops.  The USA is the worlds biggest producer of corn and soybeans, and unusually hot and dry weather is expected over the next week-and-a-half.

This month is looking to be the third driest and hottest on record – since data began to be collected 118 years ago.  Whatever rainfall is expected over the mid-west will not be enough to make a difference for the corn and soybean crops, meteorologist are reporting.

Kevin Craney, a senior commodities broker for RJO Futures in Chicago, stated this today regards the current soybean futures & corn futures situation, “With little rain in the forecast over the next 10 days and a blast of heat occurring early this week, we are sure to see further deterioration of the crop on next weeks report. Any correction in the grain market is sure to be met with tremendous support by end-users.”  Craney adds, “Further price rationing will be needed.”

The trends for soybean futures & corn futures are still technically UP, with no top seen in sight, but I need some type of significant pull-back to enter into a corn position.  We have been currently long soybean futures and soybean oil futures, and continue to move our protective stops up accordingly.

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