[Listen] Gordy Ag Market Recap Corn Crashes
Beans held pretty well last week but it sure was another story for corn. From the neutral to slightly friendly May USDA Report Wednesday morning corn dropped around 75 cents a bushel. Gordy has been saying for a couple weeks corn was very overbought and we were due for a correction. But nobody was looking for a 75 cent correction. There was very large volume especially Friday when it sure looked like the funds were bailing out of their long positions.
However, Gordy points out that nothing has changed in the "real world." The second crop of corn in Brazil continues to be hurt by hot and very dry weather. Some analysts are already talking about a 600 million bushel of corn has been lost. Plus, our weather in the Midwest has been much less than ideal too. Basis levels for corn and beans are well over futures which indicates a very tight supply. The corn bulls are wounded but it may not be over just yet. It is going to be interesting how corn opens tonight and Monday morning at 8:30.
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