IARN — The grain markets rallied Tuesday after the extended Memorial Day holiday weekend.
Tuesday’s close showed corn up 28 to 32 cents, soybeans 18 to 24 cents higher, and wheat futures also seeing gains near 30 cents. Bill Moore is a senior account executive and author of The AgMaster Report for Price Futures Group in Chicago. He tells the Iowa Agribusiness Radio Network that green was the color of choice for grain futures coming out of the holiday break.
“We got a hot and dry forecast going for the next 10 to 14 days and the market responded in kind,” said Moore. “On the reopen at 8:30, corn wasted no time going up the limit. It held there for a little while. That was it for the day as it sold off, but we still closed up about 31 to 32 cents.”
Moore believes the markets will primarily focus on the weather going forward.
“With the stocks as tight as they are, it’s not going to take a lot to get this market’s attention,” said Moore. “I’m not saying we’re going to have a drought, but just a forecast of hot and dry for a couple of weeks is all it takes. Here in Chicago, we are very dry. That was the biggest emphasis for pushing this market on the upside.”
Moore adds this year’s U.S. crop will be crucial in replenishing stocks that have been depleted to seven-year lows.
Story courtesy of the Iowa Agribusiness Radio Network
