Big Gains for Corn and Beans Last Week
Finally last week the slowest corn planting pace on record got the markets attention. The nearby July contract moved above $4 a bushel for the first time since last May. Gordy on the air last week said all the corn contracts that were sold in the last year are now losing money! I am sure that is why the funds covered or bought back a record number of contracts last week. They covered 166,189 contracts leaving still net short 116,729 contracts.
Soybeans saw nice gains last week too but not the strength we saw in corn. Many traders are thinking that some of the corn acres that do not get planted will be switched to beans. Plus, there was speculation that a Market Facilitation payment of $2 a bushel would be paid to farmers. Traders assumed that would mean even more bean acres. Then later on in the week the word was a payment would not be made on a commodity basis. Instead there will be a calculated county average multiplied by your planted acres.