Tough Week For Corn and Beans
It was not pretty for the corn market last week as corn lost around 15 cents a bushel. However, it is not unusual for corn to trade lower during this time of year as traders assume if is not really hot and dry yields continue to move higher. I will give the bears the argument that African Swine Fever is impacting the demand from China for corn and beans. The Frustrating fact is that the market totally forgot about all the prevented plant acres and all the water damage from the excess rain last April, May, June and most of July!
It was exactly the same story in soybeans as beans lot about 33 cents a bushel in the November. Traders do not remember all the rain last spring and early summer. Plus, they do not believe the USDA report dropping the planted soybean acres from the Acres Report. Even with all the weather problems this year we are still in the same pattern. Traders build up the crop and when we get into harvest they realize the crop is not as big as all the hype!