Market Report: Disappointing Close Wednesday

Corn closed Tuesday about unchanged, so if you just saw the close you would think it was a rather quiet day. It was not, because corn was up about 12 cents before sliding into the close. It appeared the funds continued to get out of long positions. In the overnight session and during the day corn was supported by concerns of a hot and dry forecast during pollination. But, with crop condition ratings very high and the USDA stocks and acres report on Thursday, traders decided to move out of long corn positions. Traders think the USDA numbers will be bearish.

Beans closed Tuesday with gains of 15-17 cents, but that was about 16 cents off the highs. Traders think the USDA will show an increase of 2 million acres in Thursday's acre report. The 40-day moving average did hold so at this point the charts point to this just being a correction. Bean traders are concerned about the hot and dry forecast, which was supportive along with great demand and a lower dollar index. Thursday's USDA numbers is one of the biggest reports of the year with a reputation of producing big moves. So, hang on and let's see what the numbers are Thursday.