Corn held fairly well Wednesday compared to beans and wheat closing about a penny higher. The China stock market was melting down and that spread to the Dow Jones Industrial Average too. At one point the Dow was down more than 500 points! It did recover some of those losses, closing down 249 points. Also bearish was crude oil, which lost another 6 percent Wednesday. Crude did trade under $27 a barrel for a while before recovering a bit. Remember, a few years ago crude was about $135 a barrel. The last CFTC report showed the funds had really piled on to the short side so maybe they were reluctant to sell more and that is why corn held.

Beans got hit with more selling Wednesday, losing 6-9 cents. The last CFTC report showed the funds had covered about 26,000 shorts last week. So, I guess they had some ammunition to add some of those shorts back. The national Grain and Oils Information Centre in China reported that China will import 85 MMT of beans this year. The last USDA report had China importing 80.5 MMT. The market seemed to ignore this bullish news, assuming that most of those extra beans going to China will come from South America. There was a little follow through selling last night as beans were 1-2 cents lower but closed the overnight session about a penny higher.

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