Markets Take a Dive Tuesday

Corn was higher Monday, traded higher in the overnight session and opened OK Tuesday morning. Then the wheels came off. The dollar index was lower for five days and traded lower in the overnight session. Tuesday morning the dollar index rallied and corn went the other way. By the close Tuesday, corn was 9-12 cents lower. The crop progress report showed corn planting was well ahead of the five-year average at 45 percent planted. With the good weather forecast, traders are assuming farmers will get all the intended corn acres planted in a timely fashion.

Beans saw the same pattern as corn, trading higher in the overnight session only to collapse early Tuesday morning. Crude oil was a dollar a barrel lower, which did not help beans. There was not a lot of new news for bean traders to work with and maybe it was time for a correction. Beans did post a hook reversal but it was not a key reversal like corn. A hook reversal could just indicate that when bean prices hit a new high they ran out of buying interest. Hopefully traders that wanted to buy a break will show up today. If there is follow through selling today, it could be a signal that we have seen a near term top.