Fundamentally Speaking

Rallies at this time of year are unusual and the accompanying chart which shows price action in August in $/bushel for December corn, November soybeans and December Kansas City wheat over the past 25 years reflects that.

Based on the end of the month closes, December corn advanced by 31 cents, the first August gain in six years and only the second time in nine years that has happened.

The percent advance of 9.5% is the largest since the December 2011 contract jumped 96 cents or 14.3% in August 2011.

November soybeans increased by 61 cents this month and like corn that is the first time since 2013 that has happened for a 6.8% gain.

December KC wheat futures rose by 22 cents, a 4.9% advance for the first time since 2014 and for only the second time in nine years.

Since 1995 the average price move for December corn in the month of August is unchanged, November soybeans increase by four cents and December Kansas City wheat off by a cent.

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