Trading was quiet in the corn market Thursday compared to beans as corn closed 1-2 cents higher. Corn has rallied about 40 cents a bushel since March so there probably was some farmer selling and hedge pressure. The Energy Information Administration reported ethanol production increased 14,000 barrels per day from last week to 960,000 barrels per day. Ethanol stocks were down 2 percent, indicating Americans are driving more miles this month. There was some spreading going on with traders buying beans and selling corn.

Beans closed up a whopping 44 cents Thursday in old crop July while new crop was up 13 cents. This was one of the biggest up days in recent years! I read there was strong commercial buying along with short covering and speculative buying. Bean meal and oil stocks are tight worldwide and that appears to be fueling this rally. Money flow is also a major factor. With the market action you have to wonder if the USDA has overestimated beans stocks. Maybe last year's crop was not as big as the USDA thought? Maybe the 30 million bushels of beans the USDA thought we would import from South America never got here?

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