Despite Strong Grain Fundamentals, Latest Rally May Be Stalling

The fundamentals underpinning stronger grain prices right now — namely continued bullish export demand and tight domestic stocks for both corn and soybeans — are still in place, likely preventing any reversals in the current general trend. But with a lack of data and information to “feed the bulls” and the likelihood that the latest supply/demand data has been priced into the market already, don’t be surprised if the grain rally stalls out between now and spring planting. That doesn’t mean prices will slide “dramatically lower,” one analyst says, and a lot can happen to prices based on both upcoming USDA reports on global supply/demand and expected U.S. corn and soybean plantings, as well as purchase news from major export buyers, namely China. See more market analysis.