Markets Thursday Ouch!

It was not a good day for corn or beans Thursday. In the morning the USDA announced a bean sale cancellation to China of 395,000 MT. The pressure from beans spilled over to corn as corn closed down about 4 cents. Corn closed below the 40- and 50-day moving averages. Traders are concerned about decreasing demand from China. In addition, China is working to cut internal corn prices to increase demand for domestic corn in China. While the price of corn in China is well above world prices, maybe the reason end users don't want is because it is very poor quality. China does not have grain storage facilities like we do and to maintain grain quality.

Beans really got hit by the cancellation announcement, closing 14-15 cents lower. Beans closed below the 40-, 50-, 21- and also the 100-day moving averages. I continue to read about some weather issues in South America, but the market is not paying any attention. Remember the Export Sales report is out this morning being delayed a day due to the blizzard shutting down Washington earlier this week. I suppose it is wishful thinking for a great number causing beans to recover Thursday's losses?