Ag Market Recap Tough Week [Listen]
It was a tough week for corn and beans but it could have been worse after the limit move lower Thursday. Corn closed down the 40 cent daily limit and beans were down more than one dollar a bushel. I though the daily limit on beans was one dollar a bushel but beans were down more than a dollar. I knew if there was a limit move one day then there were expanded limits the next day. But beans were not down a dollar a bushel Wednesday?
Randy Tatge With Tatge Ag Markets was filling in for Gordy Friday and Randy said he was surprised too that beans were down more than one dollar. Randy did some checking and found that if any soybean products had a limit move then soybeans and products would have expanded limits the next trading day. Soybean oil was locked limit lower Wednesday so, we had expanded limits Thursday.
Soybean oil was down the limit because there was talk that the Biden Administration would be reducing the use of biodiesel. Soybean oil is the seedstock for most of the biodiesel here in the United States. It seemed like when this rumor hit the news both corn and beans began moving lower. Then there was rain in the forecast for very dry areas of the Midwest, export sales were very low, and the dollar was sharply higher.
The stage was set for the limit mover lower Thursday. It was nice to see both corn and beans got a big part of the losses back on Friday going into the weekend. Click on the link and listen to Randy talk about the ag markets last week!