Corn closed 5-7 cents lower today. When I get to the studio each morning about 4AM, the first thing I do is check the markets. Corn was only down 1-2 cents at that time. On the National News from ABC at 5, I heard the stock market in China was melting down and I knew the grains were going to have a tough day. The China Purchasing Managers Index showed contraction in the China Industrial economy. Gordy has pointed out many times in our market reports that if the economy in China does slow that will affect demand for industrial goods much more than agricultural commodities. China has 1 billion people. If you are the ruling elite in China, do you want 1 billion hungry people calling for your head? That is why I am hoping that when this blows over we will see a recovery in the corn market.

Beans posted losses of 12-13 cents a bushel. The negative factors affecting corn hit beans even more. The Pro Farmer Midwest Crop Tour found that the corn crop was hurt more than beans. I suspect the market is buying and trading the results of the Pro Farmer Tour. The Crop Condition Report showed the beans in good to excellent condition were unchanged at 63 percent. Normally at this time of year we see crop condition ratings fade into harvest. Being unchanged is more ammunition for the bears.

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