[Listen] Bullish News Corn and Beans Trade Lower What Happened?
Corn and beans have been in a bear market for a long time. When the USDA Acres Report was released June 30, 2020 the corn planted acres was down 5 million from the March Intentions. That was a shock to the market. Then the forecast was warm and dry for most of the Midwest for the next 2 weeks. We had the start of a rally! Friday morning the USDA announced China had the second largest purchase of U.S. corn in history, 1.36 million metric ton!
Then Friday morning the USDA released the July Supply Demand Report or WASE Report. New crop corn carryover was cut almost 1 billion bushels and the world numbers were a little friendly too! Just before the report was released corn was trading 2 or 3 cents lower. After the report corn traded 10 cents lower and closed about on the lows. What happened?
Click on the link and listen to the Weekly Ag Market Recap with Gordy from Chiodo Commodities. Gordy said after the close many traders were talking about the U.S. weather model changing to a cooler and wetter forecast while the European Model was still calling for hot and dry.