- More upside in Chicago wheat, corn and soybean futures, and sharply so! The wheat chart has the distinct appearance of a runaway market as the last three trading sessions have been categorised by gaps and high volume of trade.
- Corn and soybeans are similarly making gains and it is all about central US weather becoming warmer and drier, and the fact that concern is growing over crops in the Plains and northwest Midwest. July is the month that can make or break crops, and the market is well aware of that. Today we would not argue agains a sharp decline in corn yield although would await more weather information before suggesting soybeans will suffer similarly. Funds are record net short in soybeans and it would be foolish to ignore what that could do to prices in the event of a change of heart – be warned!