On June 29, according to media reports, the Chicago Board of Trade (CBOT) soybean futures market closed down on Wednesday, with the benchmark period closing down by about 2.30%, because the weather forecast showed that there will be rains that are conducive to crop growth in the Midwest.
1. Changeable weather in the U.S. corn belt has kept traders on edge for weeks. Improved rainfall in the Midwest this week will slow a sharp decline in crop conditions and the weather will finally turn more favorable heading into the crucial July, one analyst said. Another analyst said it looked like speculative funds had begun unwinding their recently established long positions in corn and soybeans as opportunities for improved soil moisture in the U.S. Midwest increased.
2. With much-needed rain finally arriving across much of the U.S. Corn Belt, the question for traders now is whether the stricken crop will recover. One analyst speculated that next week’s crop progress report would again show a slight decline in crop conditions. While the rainfall is good for crops, it may not adequately replenish subsoil moisture in the Midwest, he said.
