Tough Week For Corn
It was a very tough week for corn as it dropped around 20 cents a bushel. Corn had been in a multi-week uptrend. What started the sell off? It was a statement that the phase one trade deal with China was withdraw, President Trump said in a tweet that the deal had not been called off but the the damage was done. Corn dropped through the uptrend support and closed back in the June range.
With the weather cooperating it looks like we need a bullish surprise from the USDA Acres or stocks report on Tuesday. It seems a little unusual to see the funds short arounf 300,000 contracts of corn and long about 25,000 bean contracts. There is very good crush and export demand for beans That is reflected in the very tight bean basis. That seems to be saying the bean market is a lot tighter that the carryovers we got from the USDA