Markets Friday, Ouch

It was not a good day for the grains Friday as corn closed 11-14 cents lower. The bulls were in control the first half of the week but the bears got it back the second. For the week, May corn lost about 7 cents and new crop December 8 cents. If the bears can keep control this week we could very well wipe out the recant rally in corn. In the meantime the weather is still dry in Brazil for their second crop corn and the dollar index is much lower than it was just four months ago. Even if the rally is over the bright side is at least we know corn can rally!

It was again a similar story in beans. Beans lost about 14-32 cents Friday. For the week though May beans did gain about 31 cents, so the uptrend in beans is still intact. The bulls have lost the momentum but they have been wounded. The funds have built a long position in beans. It they decide to liquidate beans will be under heavy pressure. If they don't liquidate, this might just a normal correction.