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Started by metmike - May 2, 2018, 12:50 p.m.

Price has been pressured a great deal for beans, partly from weather.

The late planting of corn is taking away estimated acres of corn and adding them to beans.  Planting season weather is tricky to trade. When corn and wheat go higher and beans go lower on some days, then others, like yesterday they were all strong.

Once the crop is planted and we know the acres, we trade "rain makes grain"

Rain is bearish for both corn and beans and they both go down in tandem when it increases after the crop is planted(unless we have extreme rain)

Hot/dry or less rain is bullish for them both and they both go up in tandem.

Right now, wheat short covering is actually the biggest deal. Wheat prices can sometimes effect corn more than beans.

With wheat prices down in the 4's it was not unreasonable to think that some wheat would be used for feeding animals.

If wheat keeps going higher and approaches $6, that's much too expensive for animal feed.

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