Market Report: Corn and Beans Disappointing Tuesday

Corn could not hold its gains Tuesday and closed about unchanged. Corn did trade up to its highest level since April 21. It may be a sign we are running out of buyers on small rallies. The weekly crop progress showed that 86 percent of the crop is planted while the five-year average is 85 percent. Emergence is at 60 percent with the five-year average at 55 percent. We did get an early and fast start to the planting season but with stretches of cool wet weather crop progress is now about average. I read China imported 1.8 MMT of corn this year through April. That is an increase of 31 percent over 2015.

It was a disappointing day for beans too on Tuesday as beans closed 4-7 cents lower. Beans had a range of 25 cents and closed below the 21-day moving average for the first time since March 3. The crop progress report showed 56 percent of the bean crop is planted, slightly ahead of the five-year average of 52 percent planted. The USDA reported that 140,000 MT of beans were sold to an unknown destination for the 2016-17 season. This was the second day in a row a major soybean sale was announced by the USDA. With beans not being able to hold gains it could be a sign that this rally is running out of gas.