Markets Tuesday Ouch!

It was a tough day for corn Tuesday as corn gave back all of Monday's gains and then some, posting losses of 4-5 cents. Corn was lower in the overnight session and it only got worse. Corn dropped through the 21-, 40- and 50-day moving averages. The Dollar Index was slightly higher and there were reports of "beneficial" rains in Argentina, but those were the only reasons I saw as to why corn broke. Gordy probably had the best reason for the break in the 11:15 market report when he said it sure looked like fund selling. Once again defending their short positions.

Beans really had a bad day Tuesday, closing with losses of 10-12 cents. Beans, too, dropped through the 21-, 40-, 50- and 100-day moving averages. Technically beans did not do any damage to the charts as they are still in the range they have been in since the start of the year. However, it was still disappointing as it looked like beans were going to challenge the $9 a bushel level. In the background may be the USDA Outlook Forum report that I did see will be released later this week. Everyone knows that will be bearish.