After a shocking USDA acreage report last week, and hot, dry weather in the forecast, corn and beans have rallied to their highest values in over 3 months.
The first big bullish news came last Tuesday when the USDA lowered corn acres 5 million from the March intentions down to 92 million. This was the biggest March to June drop since 1983. Trade was expecting a 2 million acre drop. Bean acres were up 315K to 83.51 million, which was below trade estimates as well.
The market now has all its attention on the weather as we head into pollination. The two-week forecast is calling for above-average temps for the entire corn belt and dry in the eastern corn belt.
Remember to get your targets/offers working as weather markets can be extremely volatile/irrational and usually short-lived.
The updated USDA supply and demand report will be released Friday, July 10th, at 11 am.
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