Market Report: Corn and Beans Lower

Corn was hit hard today, closing down about 15 cents. I read the funds sold about 17,000 contracts or 85 million bushels. Sunday evening about 9PM, corn was down about 7 cents, by 4AM it was about 5 or 6 cents, but then later today the selling overwhelmed the market and corn closed about on its lows. That does open the door for some follow-through selling tonight and tomorrow. Traders were talking about the nonthreatening weather and how corn will be able to recover from all the rain in the East. Gordy mentioned in our 11:15 report this morning that it was fund selling that likely had nothing to do with the "real world." The metal markets were down hard and there was likely some spillover pressure in the corn.

Beans closed about 7 cents lower, which was not nearly as bad as corn. Beans closed at the upper end of the daily range while corn was at the lower end of the daily range. It was encouraging that when beans moved lower buying showed up. Beans did not hit sell stops like corn did. That tells me that traders were still concerned about just how many acres did not get planted but that all the rain may be affecting bean yields more than corn. There is a lot of growing season ahead before we find out what the final production will be.