The Bears Have Control
There was some hope for the corn bulls last week on Tuesday when wheat was up sharply pulling corn higher too. However, after that the bears took control! All of the news was about the coronavirus in China and around the world. Then the bears had another card to plan which was the USDA Outlook Forum. The USDA projected a corn planted acres this year of 94 million. With a yield of 178 bushel an acre the USDA projects a corn crop over 15.5 billion bushels.
The coronavirus had a big impact on soybeans too. Most traders do not think China will buy all the beans and ag commodities called for in the Phase 1 trade deal. Then there is the big bean crop being harvested in South America and the bears seemed to be in total control. The one bright spot was the bean numbers from the USDA Outlook Forum. The USDA is projecting a bean carryover this marketing year of only 320 million bushels. There have been many years at this time the USDA was projecting almost a 1 billion bushel bean carryover!