The weather forecast for September calls for the early arrival of cooler fall weather. That has the market worried. With Eastern Corn Belt planted and replanted late, the last thing we need is an early frost. Doug Werling, with Bower Trading, says the forecast for the early arrival of fall weather has traders nervous, “The forecast calls for a cold snap in the Northern Plains around the 8th and 9th of September, and the longer range forecast calls for the early arrival of cooler weather in the Corn Belt between the 15th and 28th of September.”
Werling says this weather trend is significant, “We need every bit of this month to finish this crop. With a large amount of replant in Indiana, we have some corn that just finished pollinating 2 weeks ago. So there is a lot of late stuff out there.”
Another factor that may provide some market action is exports. For the last two weeks, we have seen higher export numbers, and the market has rallied as a result. The lower value of the dollar is helping, according to Werling, “The dollar is currently at 92, about 8 points under par, and it is acting like it wants to go lower. On top of that we have cheap prices in the futures market. So guess what, our soybeans are cheaper than Brazil’s beans.”
For more market strategy information, contact Bower Trading at 800-533-8045 or bowertrading.com.
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