Market Report: Corn and Beans Lower

Corn closed about 5 cents lower Friday, giving back all of the gains from earlier in the week. Informa released their acre projections for 2015 and they were actually below the USDA projections. Informa's projections were at 88.8 million acres compared to the USDA at 89.2 million acres. The Commitment of Traders Report showed that the funds increased their net short position by 29,598 contracts. Week over week that is almost a 25 percent increase in the bearish attitude. Even with the flooding and saturated soils the market still had the attitude that rain makes grain. One analysis said even though some areas drowned out, the areas that didn't will benefit from the rain and more than make up for the lost acres.

Beans closed down 2-6 cents Friday, but for the week posted gains of 31 cents. Informa projected bean acres this year at 86.8 million acres, which was down from Informa's earlier estimate of 87.2 million acres. Both those are above the June USDA estimate of 84.6 million acres. Because of all the rain there are still about 12 million acres of beans that are not planted. You have to believe that some of those will not get planted. The real question is will we have more prevented plant acres this year than a normal year?