Market Report: Change of Pattern?

Both corn and beans have been under pressure the last month or so. Early last spring we got a nice rally going on weather problems in South America. Brazil's second crop of corn got hurt by dry weather and Argentina's bean crop was hurt by very wet weather right when harvest was about to begin. We now have corn and bean prices far below where we were trading when it was assumed Brazil and South America would produce a record crop! In addition the market was also assuming a record corn and bean crop in the United States too.

Well, it sure looks like we will have a record corn and bean crop in the United States this year. Just how big a crop is still a question but traders seem to assume we will shatter our previous corn and bean production record. It seems like we will have to get well into harvest before we know for sure just how big the corn and bean crop is. Many times when you have a long holiday weekend you can have a pattern change in the markets. It was very disappointing when I checked this morning and saw both corn and beans were a couple of cents lower.