Markets Thursday Disappointing

It sure looked like we were going to keep our rally going Thursday. The Dollar Index was sharply lower, the Brazilian real was higher and we had corn up 4-5 cents. However, corn closed about unchanged. The Export Sales were the largest we have seen this month too! Japan bought 437,300 MT and Mexico bought 283,900 MT. Year to date we are now only about 18 percent behind last year. The funds are near record short corn and I suspect they were selling Thursday defending their short positions.

It was a similar story in beans Thursday. Beans were up almost double digits and closed only up 1-3 cents. Export Sales was a good number at 858,831 MT, well about the average trade guess. As we approach the planting season in the U.S., beans have a seasonal tendency to rally. There are ample world supplies of beans, but we do need to produce another big bean crop in the U.S. Hopefully a hint of a weather issue and we will see beans continue to rally.