[Listen] Gordy AG Market Recap Contract Highs Again!
It was another almost unbelievable week as both corn and beans hit contract highs again. Typically the grain and livestock markets get pretty quiet around the Christmas and New Years Day holidays. But not this year! The crop is getting smaller in South America due to warmer and dryer weather and the forecast is for more of the same. Plus, Brazil is out of corn and beans and has actually imported some beans from the United States. Plus we have great domestic and export demand for corn, beans, and pork.
You have to wonder though if we are not due for a correction early in 2021? Corn set a contract high something like seven days in a row. Plus, the funds are long around 330,000 corn contracts. That is a huge long position however, the fund record long position is around 450,000 contracts. The funds are long about 200,000 contract of beans which is a large position too! So, the funds could still increase their long positions but you have to be aware that if at some point they decide to liquidate their long positions we could see a pretty steep correction!
However, as Gordy always says "the real world is out there" and it would be likely that commercials and end users would be ready to "buy the break" in price. Click on the link above and listen to Gordy talk about the grain and livestock markets last week.
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