Bullish momentum as a consequence of weather conditions
June brought an abundant wave of relentless storms, almost double the normal monthly rainfall, and a strong rally in grain prices. The wet conditions have spurred a long list of concerns for U.S. farmers and U.S. crop conditions substantially deteriorated in the final two weeks of June, according to the USDA.
Nitrogen leaching and the lack of days available to spray post emergence crop protection chemicals are two of the major concerns affecting crop conditions. Weed, pest, and disease pressure may all increase as the growing season progresses due to the deadly combination of wet and cold weather after planting, followed by delayed spraying.
Also, soybeans are known for an inverted correlation with the US dollar.
Sources:
Commodities are less risky than forex and stocks, but beware of consequences if you trade on other's people ideas anyway.
Nitrogen leaching and the lack of days available to spray post emergence crop protection chemicals are two of the major concerns affecting crop conditions. Weed, pest, and disease pressure may all increase as the growing season progresses due to the deadly combination of wet and cold weather after planting, followed by delayed spraying.
Also, soybeans are known for an inverted correlation with the US dollar.
Sources:
- investing.com/news/commodities-news/u.s.-wheat-futures-rally-to-6-month-peak-on-harvest-concerns-348645
- investing.com/news/commodities-news/u.s.-wheat-futures-trade-near-6-month-high-ahead-of-usda-reports-348872
- whig.com/story/29443336/usda-record-soybean-crop-planted-progress-slowed-by-rain
- signalfinancialgroup.com/CorCharts/S_DX_Correlation.jpg
- investing.com/analysis/grains-rally-in-wet-june-weather-256909
Commodities are less risky than forex and stocks, but beware of consequences if you trade on other's people ideas anyway.
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