01/30/2025 Money Flow, Stress Test

On the Grains
Overnight markets were slightly weaker after yesterday’s impressive rally across the board. Yesterday’s move can be credited to two things: first money flow, and second the weather in South America. Forecasters continue to have 11–15-day models having rains, which will continue to inhibit harvest progress and second crop planting progress. It seems kind of early to be worried about second-crop corn just yet. However, the world stocks available to use, minus China, are tight, so there are probably reasons to be at least concerned. Now throw in Argentina, which continues to be hot and dry. Once the train leaves the station, the money follows. All eyes are on the front month, March corn, as it tries to take out the $5.00 resistance levels.