[Listen] Gordy Market Recap Bears Have Everything Going Their Way
It was another very negative week for the grain markets. It seems the bears have everything going their way. Commodity Broker Gordy Kralovetz with Chiodo Commodities said the media continues to support the bearish side of the markets. You have to give the bears the argument that export sales especially for corn are very poor. Gordy questions that maybe corn export sales are poor because we do not have the corn to export?
Could it be that the Commercials do not want to commit and sell corn to China because they are concerned they cannot source the corn in the United States? There was a lot of attention in the news about China canceling corn purchases from the United States. Gordy points out it is likely China did not cancel the corn. Maybe the Commercials just sourced the corn from Brazil rather than the United States?
If we have very ample corn supplies in the Midwest why did May corn expire and go off the board around 60 cents a bushel above the now lead contract July? If corn supplies are so high in the Midwest why were there virtually no corn delivers in the May contract? Furthermore, why are there local elevators in Southern Minnesota bidding corn 30 cents over Chicago and ethanol plants 45 cents over?
One of the market services I read emails a weekly cash basis report for the entire Midwest. That report shows that basis and cash bids for corn are higher than normal all over the Midwest, not just "in our backyard." Click on the link and listen to Gordy talk about the ag markets last week.