Corn and Beans Just More of the Same
It sure seems like we cannot catch a break this year! There were a number of times corn was poised to break out to the upside and something unforeseen pushed it back lower. A number of times it was a tweet by President Trump about the trade war with China. Then we got a Phase 1 Trade Deal with China, the USMCA was passed and we were breaking out higher. That is until the coronavirus broke in China! I guess it could have been worse because corn only lost 6 cents a bushel last week in the March!
The story was much worse in beans. Since the Phase 1 Trade Deal was signed with China beans have dropped more than 70 cents a bushel! Beans lost almost 30 cents a bushel last week alone. Plus it was the third weekly lower close for beans. Plus, beans are not far from the contract lows set last May! Plus the bears have even more bearish news to hype about which is the bean crop in South America.
I cannot remember when I have been this discouraged about the corn and bean market action. Maybe back in the 1980's? I just keep thinking if we cannot get a big rally going with 11 million corn and 5.5 million beans acres lost to Prevent Plant when will we ever see a big rally again? I guess maybe the market has turned me into a beat too?