Market Report: Corn and Beans Lower Again

It was more of the same today as corn was 2-3 cents lower. We are still in the recent range but in the lower third of the range. The Dollar Index was higher but looking at the chart it likely is no more than a correction of the recent drop from around par. The Dollar Index dropped 5 percent and traders never mentioned it. Now it has rallied a bit and that is all they can talk about. It is not helping that the trend is down and end users are only buying hand to mouth. They are thinking why buy today when it will be cheaper next week. It's tough to argue with that reasoning.

Beans closed lower for the same reasons that took corn lower. Beans were down 3-5 cents a bushel. New crop November posted a new contract low. Years ago there was a weather premium in the market at this time of year. There is a long growing season ahead and there might be adverse weather that would decrease yields. That uncertainty would be a weather premium in the market. I saw a quote from one large trader, "today we assume perfect weather until proven otherwise." That means that in many years the season low is seen in the spring and not fall like it used to be.