It was a brutal week for the grains last week. Commodity Broker Gordy Kralovetz said the grains were still affected by the Federal Reserve hawkish comments two weeks ago! It was on Wednesday and corn and soybeans appeared to be breaking out. One of the Federal Reserve Governors was speaking and that is what has taken us down for almost two weeks. From the technical side the charts looked about as "ugly" as possible.

The bright side is it appears we did put in a key reversal Friday when we trader lower and then turned and closed higher. I will give the bears the point that export sales, especially corn are horrible. However, the basis indicates corn supplies are very tight. Plus, the drought in Argentina dramatically reduced their soybean crop so you would think Argentine will import all those lost beans from Brazil to keep their crushers in business.

Remember Argentina is the largest soybean meal exporter in the world. Click on the link and listen to Gordy talk about the ag markets last week,