Another Tough Week For Corn and Beans!

It was the third week in a row that both corn and beans posted big losses. This week corn closed 15 to 16 cents lower. A good weather forecast for the upcoming week with warm temperatures and good rains was part of the reason corn dropped. In addition the dollar was higher and beans were dropping so there was some spillover selling in corn too. It was thought that coming into Friday the funds were long only 30,000 corn contracts. It was not very long ago the funds were long more than 200,000 contracts!

Beans lost another 59 cents a bushel last week. This is one of the most sever drops in the bean market in such a short time I can ever remember. In addition to the higher dollar, good weather beans were also pressured by trade war talk with China. China has not announced tariffs on imported beans yet but it appears the market is sure that that will occur. While beans are very oversold with a good weather forecast through the end of June it will likely be difficult for beans to stage a recovery.