Rain on the Radar Friday
Corn had a nice 2 day rally going until rain on the radar Friday took all the gains away and then some. There are still areas of the Midwest that are very dry and the forecast is still calling for warmer and dryer than normal. However, there was even rain in North and South Dakota. In traders minds it was "crop saving" rain for corn and soybeans in the Dakotas. Which means they think the drought had no impact on the corn and beans. The drought devastated the spring wheat crop but had no impact on other crops?
Beans were down Friday too but held much better than corn as beans only lost 1 to 4 cents a bushel. The critical time for beans is late July and August. As the old saying goes "the corn crop is made in July and the bean crop is made in August." So, traders are more concerned about the warm dry forecast having more of an affect on beans than corn. The dollar index has been dropping down to yearly lows which may be supportive but traders are not talking about it.