Comments: Grain and soybean futures continued to surge last week on mounting concerns about U.S. crop production as traders largely ignored negative macroeconomic news.
Searing heat and continue dryness across the U.S. Midwest spurred increasing comparisons to the disastrous 1988 drought and sent corn yield expectations tumbling.
In addition to crop concerns, evidence of continued strong Chinese demand helped send nearby soybean futures soaring near above $16.00 for the first time since 2008.
Wheat futures largely followed corn higher, but wheat gains were limited somewhat by a surging U.S. dollar and renewed concerns about the European debt crisis.
The bull market should continue this week with weather forecasts showing little rain in sight for the Midwest.
Wednesday's USDA supply/demand update will contain significant revisions in both supply and demand forecasts.
Livestock futures action was mixed this week with front-end lean hog and live cattle contracts feeling pressure from demand concerns, while deferred months were boosted by ideas surging grain prices would limit production.
Cotton futures eased as the strong dollar spurred renewed demand concerns.
Click on the Brock logo or call 1-800-558-3431 for more info on our services.
