Tough Week For Corn and Beans
Corn was doing very well breaking out after a two-day rally Monday and Tuesday. Then it all disappeared Wednesday and Thursday. The USDA Supply Demand was not really bearish but the USDA left the national average yield unchanged at 170.8 bushels an acre. Even though the USDA does not have a history of changing the yield estimate in the July report apparently traders expected a reduction. So, down we went Wednesday and Thursday. We did recover a bit on Friday but there is a bearish key reversal on the charts now.
Like corn beans were on their highs of the year Tuesday and collapsed Wednesday and Thursday. Beans did manage to close 12-14 cents higher on Friday but beans also have a bearish key reversal on the weekly charts. The 6-10 day forecast is calling for above normal precipitation in the dry areas of North and South Dakota, Nebraska, and parts of Iowa and Minnesota. However temperatures are forecast to be above normal too. If the rain is less than projected both corn and beans could be back to challenging the highs of the year.