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When the Market Drops Before the Weather Arrives

Fund Liquidation Changes the Story, But Has It Changed the Outlook?


One of the most frustrating market environments for producers is when prices move sharply before the underlying fundamentals have had a chance to develop. That's exactly where agriculture finds itself today.


Over the past several weeks, grain markets have experienced a rapid decline driven largely by fund liquidation. The speed of the move has caught many participants off guard, especially considering the calendar. Historically, major summer market moves are often tied to weather concerns. This year, the market sold off before a meaningful weather story emerged.

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