Market Report: Corn and Beans Sharply Lower

It was a tough day for corn Tuesday, posting losses of 8-9 cents. Trying to look at the bright side, corn did close almost 10 cents off the lows of the day. I read on Pro Farmer the funds sold 22,000 contracts or 110 million bushels. Apparently the rainfall over the Fourth of July weekend was better than forecast and the 6-10-day forecast is calling for above normal temperatures above normal  rainfall. That was all traders needed to get the rout going. Export loadings saw another big number at 1.165 MMT. Traders paid no attention the export demand and only focused on the "ideal" weather.

Corn was bad enough, but it was really a rout in beans, closing down 52-60 cents a bushel. It is hard to believe it was just last Thursday beans were up around 40 cents a bushel. Looking at the charts, the 50-day moving average did hold in the November at $10.73. That was also the low last week. Export loadings were kind of OK at 7 million bushels. The outside markets did not help corn or beans Tuesday. The dollar index was firmer, and crude oil and the stock market were lower. Pro Farmer reported that the funds sold 22,500 contracts or 127.5 million bushels. If the funds continue to get out of their long positions this could get really ugly.