Weather rallies during the U.S. growing season often top out when the first raindrops hit the ground in parched areas. Futures traders often assume the worst until the radar proves otherwise.
This same psychology could be happening this year for the South American growing season. Rains popped up over Argentina last week, with more showers in the forecast. While none of the precipitation looks enough to be called a drought-buster, damage to yields may not be as bad as some of the worst estimates floating around a couple weeks ago, when the futures market peaked.
Argentina has a chance for light showers early in the week, with potentially better coverage by the weekend. Highs will stay in the upper 90s mostly until those late-week showers arrive. That, coupled with on-going nervousness from financial markets, could be enough to keep the soybean market under pressure.
To read Bryce Knorr's complete weekly soybean review, click HERE.
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