Both corn and beans started the week sharply lower. The pressure continued through most of the week. There were many levels of technical support that were violated and things looked pretty bleak. It was hard to understand why given that the drought continued in Argentina. The crop just keeps getting smaller. In addition Brazil is behind harvesting beans which has delayed getting their second crop of corn planted.

It seemed most of the bearish talk last week was centered around the economy here and the Federal Reserve raising interest rates throwing us into a recession. That is s distinct possibility, but the traders seem to forget people still will want to eat. The bears do have a point about our poor corn export sale pace. Late next week the USDA will likely lower corn export sales again in the March Report released Friday.

Gordy mentioned a news story in U.S. News and World Report that 20 to 30 percent of the land in the Ukraine has been destroyed because of the war with Russia. Some will take years to get back into production and some may never be back! Click on the link above and listen to Gordy talk about the market action last week.

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