Monday Market Report: Ouch!

It was a tough start of the week for corn Monday as it closed 5-7 cents lower. In general all of the agriculture commodities, including the livestock, were under pressure. Traders are convinced the USDA will raise corn yields and carryover in this morning's report at 11AM. Export loadings did not help either as they were only 295,701 MT. That was down 38 percent from last week. Harvest is 93 percent complete, so at least the bears can no longer talk about harvest pressure. About the only bright spot is that corn is still "range bound," although now in the lower end of the range. Since last April, December corn has traded between $3.60 and $4 a bushel. Will we hold $3.60 and maybe rally back? It all depends on the USDA at 11 this morning.

Beans actually held the best of all the grains Monday, closing a couple cents higher in November and about a penny lower in the deferred contracts. Export inspections had another good week, with 2.027 MT loaded last week. Maybe corn export loadings have been light because most of the docks have been loading beans? Traders are also convinced that the USDA will increase bean yields and carryover in this mornings report.