Corn: Mother Nature’s Giving, Markets Aren’t
The Quantum Hedging corn model has been in full bear mode for three weeks now—and it’s not budging. This week’s forecast? Basically a rerun of last week’s episode, just with more rain.
Thanks to some good moisture over the past week, and even more moisture on the way through early July, the market’s taken another kick in the shins. Seasonality this time of year is doing what it does best—dragging prices lower–and there’s not much bullish data that can take the market higher at this point.
The model’s still eyeing $4 corn, but don’t be surprised if we take a scary detour through the mid-$3s.
Soybeans Flat to Slightly Higher
The QH soybean model continues to be a bit more optimistic than the corn model.
This week saw positive news from bio fuels which added modest upside to the forecast. And technical indicators continue to be a bullish feature that is supporting modest gains in the forecast.
For now, soybeans remain stuck between mild optimism and a lack of real momentum. Without a stronger catalyst, prices are likely to drift sideways.
