Market Report: Corn and Beans Lower Wednesday

It was impressive Tuesday when corn was under pressure and came roaring back at the close. That did not happen Wednesday as corn closed about 7 cents lower. There were weather reports that the rains earlier this week were more widespread and heavier than forecast. On top of that the long range forecasts has increased the rain and were not quite as hot. There was likely some profit taking as corn was at the upper end of the trading range. The weekly ethanol production report was another indication of good demand. Weekly ethanol production set a record at 1.03 million barrels per day.

Beans closed 7-13 cents lower Tuesday. The weather had the same impact on beans as corn. In addition many private analysis are talking about maybe 2 million more bean acres then the Perspective Plantings report indicated in March because of the early spring rally. I have thought since spring we would have more bean acres this year. Traders were also talking about the record bean crop condition ratings of 75 percent good to excellent. The basic fundamentals of great demand for bean meal and oil are still providing good support though.