Grain markets are reacting again this week to poor weather outlooks for U.S. soybean, spring wheat and corn. Above normal temperatures and below normal rainfall are expected over the next 15 days (besides a decent rainfall chance Monday-Wednesday). A dome of heat is forecast to form over the Midwest by next week. See the recent European model forecast: 
Markets Reacting to Dome
Dry, hot weather decreased the crop conditions. Spring wheat has the lowest percentage of good/excellent crop in decades (only 40% G/E!). Soybeans are also showing showing their stress; and traders are taking notice. As a result, prices have jumped 12% from late June. 
The main cause of concern is the drought spreading from just North and South Dakota (12% of soybean production) to Iowa (17%) and Illinois (18%) as well. The latest drought monitor indicates a slight drought in Iowa, parts of Minnesota, and parts of Illinois.
Those who subscribed to our newsletter were informed of the potential for a bull market in grains back in early May. The long grain ETN (JJG) has risen as much as 15% higher from June lows. Our full, in-depth, long range reports are reserved only for paid clients. The progression of the dome alone and how much heat and dryness it brings to the Midwest can change the dynamics of the agricultural commodity markets. Jim Roemer has 35 years of experience in analyzing not only the weather but also the psychology of the grain markets and this type of dome (see Euro model above). The severity of a dome like this may only occur once every 5-10 years.
