Hard red winter wheat led the wheat markets lower yesterday due to rain in the Southern Plains with more on rain tap. Beans and corn were lower due to rain in Argentina and the beans got an extra kick-in-the-head as the market continued to price-in the soon-to-be-made Brazilian crop. It was encouraging that March soft red winter wheat managed to recover enough to settle in the technical support area of $7.20, which supported the higher opening last evening.
Every grain and oilseed related futures contract except spring wheat settled well above the lows yesterday. That means traders recognized the good buying opportunity. Spring wheat did settle 2 to 4¢ off the low.
Yes, rain makes grain, but Argentina needs several months of consistent rains to make decent yields of what remains of their crops. That much rain is not in the forecast.
SE Iowa last evening: "Farm fuel delivered 4 weeks ago was $4.32 and terminals were running out of fuel and people were on allocation. Today it is $3.54. Clear diesel went from $5.19 to $4.11 today."