Bower Market Strategy Report: Dealing with Weather Worry Markets
Indiana fields and crops continue to be in rough shape in many areas, and many areas were hit with heavy rains on Friday. However, that is not impacting market prices. Jim Bower, with Bower Trading, admits navigating a weather market is difficult, “Weather markets are ‘mercurial’ in nature and very difficult to master.” He said this one is especially difficult because we have crops and fields in tough shape in Indiana, but things are much better in the west, “What we need to really get this market to rally is a credible threat to the crop.” He added right now the forecast for the next 10 days and even the next 14 days, does not show such a threat.
Bower says soybean prices are under more pressure than corn because of large world supplies. He warns not to take this soybean market for granted, “I think you need to watch this soybean market a lot closer than many people are thinking. There is a lot of heavy rain around and that may have an impact on soybean development.” He said the real test for the soybean market will be in August when yields are determined.
For more market strategy information, contact Bower Trading at 800-533-8045 or www.bowertrading.com.
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