Market Report: Corn and Beans Sharply Lower Tuesday

It was a really tough day Tuesday unless you were an end user and needed to buy corn as corn closed 22-25 cents lower. Just to make it worse, July and December closed down the daily trading limit. Remember we saw big gains Friday to close out the week but it all changed when the American Weather model put more rain and lower temperatures in the short-term forecast. The European model does not agree with the American model but traders sure went with the more rain forecast. I read on Pro Farmer that the funds sold 47,500 contracts Tuesday. That represents almost 238 million bushels of corn.

Beans were hit hard Tuesday, too, posting losses of 10-23 cents. New crop November has now dropped 75 cents off the high. However, to show how far beans have rallied the low in November beans was set back in early March at $8.68. The USDA reported that China bought 132,000 MT of new crop beans and 40,000 MT of bean oil for the current marketing year. There was an additional sale of 66,000 MT of old crop and 66,000 MT of new crop that was sold to an unknown destination. Great demand for beans and the products did not make any difference yesterday though!