[Listen] Gordy Weekly Ag Market Recap
Both corn and beans faded later on this week but it still was a pretty good week. Corn was challenging the highs for the move and beans actually set new contract highs before setting back late this week. Both corn and beans were higher in the overnight session Thursday and followed through early this morning. But then corn and beans could not hold and closed the day just slightly above unchanged making you feel a little disappointed.
However, nothing has changed in the "real world" that got corn and beans moving higher a few months ago. We still have very good export demand, especially form China, the 2020 corn and soybean crop in the U.S. continues to be decreased. You know the old saying, big crops get bigger, and in this case, small crops get smaller. I addition the weather in South America has been hotter and dryer than normal. Plus that is the forecast for the next 10 days.
There are a couple concerns that could cause a big downturn in corn and bean prices. The funds are very long both corn and beans. If they decide to "take profits" we could see a big setback. Weather markets are typically very volatile and we are in a weather market. If we come in next week with a forecast of widespread rains in South America you know what will happen. Click on the link and listen to Gordy talk about the ag markets last week,