Severe Weather for the U.S.

Another major severe weather outbreak is likely in the Plains and Midwest today. More could occur in the days and weeks ahead.

Huge South American crops are coming which we predicted months ago. This, combined with worries over Trump and Brazil’s currency, are keeping grains in a major down-trend. Soybean prices are also under pressure due to the fact that acreage switches from corn and soybeans are likely the next few weeks (too much rain for the Midwest). This may encourage flooded corn acres to go over to soybeans.

Source  Allendale.com

 

“Corn Crop in Illinois will continue to suffer from heavy rains into late May. This will be the case in several other states. Usually, “rain makes grain” and is bearish corn and beans in the spring. However, another week or two of this type of weather may get noticed in the corn market (too much rain)”—Roemer

There have been 2 major spring corn rallies on severe Midwest Flooding that I can recall. One was in 2008 and of course the historical floods of 1993 that sent the Mississippi to the highest level in 150 years was the other.  Much of Europe and Russia are enjoying an improvement in their weather benefitting the wheat crop.  If it were not for the fact that, wheat prices would take note of more severe weather (see map) the next few days. The U.S. wheat crop will continue to come down and corn planting and early germination will be a problem heading into late May.

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