Drought is playing a definite role in high prices right now, but other factors are also at play.
As spring progresses, grain prices continue to move higher. Are we in a true weather rally right now, or are other scenarios also affecting the markets right now?
In some regards, weather is providing some cooperative opportunities to keep planting pace ahead of schedule in many areas. But there are some problematic areas across the Corn Belt where overly dry conditions could hamper yield potential.
And then there is the strong set of supply and demand fundamentals to consider. Throw outside investors creeping into the commodity space, ethanol production trends and Chinese livestock feeding strategies, and we had a lot to discuss this week.
Listen to Midweek Markets podcast for May 6, 2021: