Futures On The Rise

Hello Friends,

Good Morning, Good Afternoon and Good Evening

I thought today I would switch my focus from Currency to Futures

With a forecasted summer with hot and dry condition we could see Futures on the rise

And we should look out for opportunity in the days , weeks and even months to follow.

Let me explain.

The prices of Corn, Soybean and Wheat continue to rise as speculation of a dry summer increase stress farmers crops.

The Global Weather Monitoring Agency stated that the next 5 days will lack the precious rain crops need so much to grow. Basically the lack of rain has a negative effect on soil moisture which has an effect of the quantity and quality of crops. This bad weather advisory is pretty much in effect for farmers from Arkansas to Ohio. The weather forecast says it won’t be until May 30 before these areas will see some rain and cooler weather.

So bad weather condition equals bad soil which equals bad crops which equals a reduction in supply which ultimately equals an increase in cost.

As a result Corn and Soybean and Wheat Futures continue to increase in price.

Bloomberg Stats:

“Corn futures for delivery in December, after the harvest, rose 1.2 percent to $5.21 a bushel at 10:51 a.m. on the Chicago Board of Trade. The contract for July delivery, the most actively-traded and widely-held, advanced 0.2 percent to $5.7975, after gaining as much as 1.9 percent.”

“Soybean futures for July delivery rose 0.5 percent to $13.83 a bushel in Chicago. Soybeans for delivery in November, after the harvest, rose 0.9 percent at $12.8775.”

“Wheat futures for July delivery jumped 2.8 percent to $6.815 a bushel in Chicago, after falling 5.8 percent the past three sessions on speculation that rains may revive crops in Russia and
Ukraine”

That is all for now

Have an amazing weekend

Vladimir