Tough Week For Corn and Beans
It was a difficult week for corn last week as a result of the USDA September Supply Demand Report. Typically the September Report is a "nonevent" as the USDA does not do a survey. However, this year the USDA still raised the national average yield to over 180 bushel an acre. That was a record high yield and it took corn down about 15 cents a bushel. Looking for a positive side, corn did manage to close back above support at 3.50 in the December.
The USDA also raised the national average yield for soybeans last week. However, it was about the average trade guess so it was likely already in the market. But, soybeans still lost about 13 cents a bushel on the week. There was some talk that the United States and China were scheduling talks again but then late in the day President Trump instructed his staff to proceed with another $200 billion in tariffs on China. It sure does not sound like the trade dispute will be resolved anytime soon.
There is an old phrase in the grain markets that, " if news cannot get any more bearish, it
probably can't." Hopefully we are at that point. It just seems like the bears have everything going their way and are in total control.