Wednesday, May 23, 2012

Grains Prices Tumble on Improved Forecast Outlooks

The U.S. corn and soybean price ratings have recently gone up owing to the favorable weather outlooks. Specialists noticed that the predicted corn prices fell nearly 6% and those of soybean by 2% as the forecast for the second half of this month indicated cooler temperatures and heavy rains in key growing regions. However, less-threatening weather, complemented with swift plantings and some higher ratings for the U.S. crops, made the investor’s bullish bets on soy and corn futures less appealing.
Soy and grain prices had rocketed for the past weeks, which is probably the result of the forecasts for the spell of dry weather. The expectations for dry, hot weather have been balanced by the predictions concerning the next week, with cooler temperature and some rain. It is surely going to be beneficial for corn and soybeans. The encouraging start to the growing season does not give the clear-cut answer where the crops ratings are going to be in two months, but the investors have to respect that potential.

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