Several analysts and farmers were caught off guard by the significant move to the upside made in soybean, corn and associated markets earlier this week. Corn markets moved higher, yes, but the big boom came in the form of some significant weather risk weighing on the U.S. soybean crop.
As you’ll hear in the SoundCloud interview above with Brian Voth, of Agri-Trend Marketing, the soybean crop is far from made and hot, dry weather is not helping. Tight carryout from last year could be compounded by a smaller than anticipated crop, so old corp worries are spilling in to new crop prices. This is good news for farmers, of course, as the big move in soybeans also pulled some related markets with it. Ontario also saw some rain this weekend, but much of the corn and soy growing region could use moisture, as well. Of importance to the west, canola prices jumped over $1 a bushel in a hurry, following the soybean market, and Voth feels this might be a chance for farmers at significant price risk to make up some ground.