Rain In South America?

The first thing I did when I got to the studio this morning was check the grain prices in the overnight trading session. Remember corn and especially bean prices have been dropping. Last week beans lost about 50 cents a bushel. The losses were likely position squaring going into the end of the year. However, a larger factor was likely the rains that were expected over the weekend.

Traders never admitted that parts of Brazil and Argentina were getting dry but they sure hyped the "beneficial" rains that were in the forecast for the long holiday weekend. Seeing that corn was trading 2 or 3 cents higher and beans 12 to 13 cents higher, maybe the rains were lighter than expected. We will find out how much and widespread the rain was in South America when I talk with Gordy at 8:30 this morning. Gordy does not rely on news reports about how much it rained. He has found weather sites that just show how much it rained and where.