Another Tough Week For Corn and Beans
Not that I am counting but this was about the 6th week in a row corn has had lower weekly closes. New crop December corn lost another 18-1/4 cents last week. The USDA report Thursday was considered friendly but corn still went lower. With beans under so much pressure I guess traders sold corn too. Looking at the USDA numbers for the 2018-19 marketing year (which is the crop that is growing in the field now) the USDA is projecting the tightest world corn carryover to be the tightest in 25 years! However, new crop corn is still $3.00 a bushel?
It was a typical week for beans posting losses of 59 to 60 cents a bushel. The USDA report, what can you say (I cannot print what I really think) except ouch! Quite simply because of the trade war with our largest customer China, the USDA cut bean exports by 250 million bushels. That 250 million bushel of beans was added to world carryover. I guess the USDA thinks the people in China are going to give up eating meat and go back to eating only rice? Time will tell, but I suspect a way will be developed to get beans to China, maybe through another country?.