[Listen] Gordy Ag Market Recap Grains Drop Sharply
It sure was great while it lasted! I am talking about the big rally in corn and especially beans that began early last fall. Just in the last few sessions beans dropped well over a dollar a bushel and corn over 40 cents. Corn prices are still higher than just before the January USDA Report but beans have dropped lower than the day of the report.
So, is this just a correction of the corn and bean markets that were very overbought by all technical indicators, or will the washout continue? The funds were net long around 330,000 contracts so I am sure there could be a lot more selling ahead, if the funds wanted to liquidate all their long positions.
However, as Gordy has said, "the real world is still out there" meaning great demand for corn and beans in the U.S. and overseas. There were a number of daily export sales announcements of corn and beans this week and the weekly export sales were also huge. Click on the link above and listen to Gordy discuss the corn and soybean market action last week.