The Bloomberg grains index, led by corn and wheat, has rallied by close to 10% during the past seven days and the potential for more short-covering exists after The US National Weather Service said via Bloomberg that more rain is coming
to further soak the US crop belt.
Potent storms on Monday in the central and southern plains may bring flash floods and tornadoes, and parts of the northern Midwest are under frost. Heavy precipitation has pushed back corn and soybean planting in the central US, placing wheat quality at risk.
While wheat and corn have rallied strongly, soybeans have been held back by booming inventory levels with nowhere to go due to lack of Chinese demand (ASF and trade war). Adding insult to injury, we now have the potential risk of corn acreage, weather permitting, being switched to later-planted beans.