Market Report: Another Day the Same Story

It was the sixth day in a row corn closed lower, posting losses of about 4-8 cents a bushel. It was also a new contract low close in all the corn contracts. The bears have been talking about $3 December futures and we are not far away. So, if that was an objective maybe we are close to the early harvest lows. Looking at the crop progress, it seems corn is moving toward maturity very quickly. That normally means a little lighter test weight and weight is yield. However, traders are not concerned about a rapid finish to the crop. They think that is bearish because we may be closer to harvest.

Beans continued their move down Tuesday with losses of 13-18 cents a bushel. The crop condition ratings went up 1 percent to 73 percent good to excellent. Last year this week the bean crop was rated 63 percent good to excellent. So, in traders' minds the national average bean yield will be much higher this year. There is nothing scientific about the crop condition ratings that NASS collects from their "field reporters" but traders take them as gospel truth. That is unless they are poor, then they take them with a "grain of salt."