[Listen] Gordy Recap Tough Week For Corn
This last week we finally got what the corn market was waiting for, China buying a huge amount of corn. However, it did not make any difference, or maybe it just kept the market from moving lower? Traders just assume that with crop ratings for corn going up 3 percent in the good to excellent category the crop is getting bigger. Beans held better this week and China bought a lot of beans too. So, all the market advisory services are recommending farmers sell corn and beans before prices go much lower.
My question is, if corn and beans are going much lower why is China buying so much grain? Many analysts have said "don't pay any attention to what China says, pay attention to what they are doing." Why would China be buying all that grain if prices were "going to zero?"
We see this year after year during this time in the growing season. Traders continue to hype about how good the corn and bean crops are. Yield estimates just keep going higher. Then we get into harvest and find the yields do not match all the lofty projections. We find out we have a very good crop, but maybe not an all time record? Click on the link and listen to Gordy's comments.
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