On Monday I commented that it could have been worse as both corn and beans rallied late in the session and closed well off the lows. Today it was worse as corn closed down 7-8 cents and closed the lows. There was a lot of talk about China booking 600,000 MT of corn from the Ukraine even though U.S. corn was cheaper. I read on Pro Farmer that it was a "loan-for-grain deal." I am not sure exactly what that means other than did the deal include some sort of loan and financing? I will have to ask Gordy or Marv about that tomorrow. Normally at this time of the year we see a spring rally as different crops try and "buy" acres. This year it seems like corn and beans are trying to convince farmers to plant less corn and bean acres!

It was not any better in the soybean market as soybeans closed down 11-14 cents. There is a lot of talk about all the world business will shift to South America as they continue to harvest a record crop. At this time of the year that always occurs, but many traders act like this is the first time it has happened. Also, traders are always talking about farmers planting more soybean acres this year because farmers do not lose as much money as planting corn. That certainly seems logical, but wouldn't that be friendly to corn prices with less acres?

loading...

More From KDHL Radio