(ZCH25) (ZCK25) (CORN) (ZSH25) (ZSK25) (SOYB) 

“Why La Niña Modoki poses big crop risks for Argentina's corn and soybeans”

by Jim Roemer - Meteorologist - Commodity Trading Advisor - Principal, Best Weather Inc. & Climate Predict - Publisher, Weather Wealth Newsletter

• Monday Evening Report - January 6, 2025

Following nearly two years of our overall bearish attitude in corn and soybeans, inspired by our forecasts of big U.S. and South American crops, we became “cautiously” friendly towards corn and soybeans a week ago. But how long will that sentiment last? After all, Brazil will produce a huge soybean crop, the dollar has been rallying, global supplies of grains are ample and demand has been relatively weak for corn and soybeans.

 Going forward, price action in grain markets will be influenced largely by what could be a potential sharp reduction in Argentina's corn and soybean production, as per previous USDA estimates.

 BestWeather “Spiders” for multiple agriculture and energy commodities are featured in our WeatherWealth newsletter each week along with long-range forecasts and trading ideas.

One can see that nearly a month ago, that seasonality, the chart pattern and economic fundamentals were all slightly bullish for corn, but the moisture, global crop and temperature index were in the bearish category (red numbers denote bearish). However, now, with growing heat and dryness the next few weeks in Argentina (critical corn pollination stage) these values are not bullish. This is taking our corn Spider to even potentially higher bullish values.

The climatological factors* that will result in extensive heat and dryness for Argentina (which may also extend into southern Brazil) are features in my climatepredict.com program. 

This analytic forecast tool is available for my subscribers to the WeatherWealth newsletter.

*These factors are: 

• 1) A west based La Niña Modoki;
• 2) A negative PDO index (Pacific Decadal Oscillation which is indicated by warm waters east of China and cooler ocean conditions off the west coast of the U.S.); and
• 3) A warm Atlantic

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What are our longer-term trading strategies for corn, soybeans and other commodities? Will Midwest dryness extend into the spring and summer?

Find out here

https://www.bestweatherinc.com/membership-sign-up/ 

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