[Listen] Gordy Ag Market Recap Crashed Rain Makes Grain

It was a tough week for corn and beans. It seemed that the bears had just about everything going their way. Corn and beans export sales have dropped sharply, there was rain on the radar in Iowa and the eastern corn belt, and then it was the United States Supreme ruling on Small Refinery Waivers. That announcement later in the week seemed like the final news announcement that went in favor of the bears.

On a positive note, we did not drop as low as the previous week on Thursday when corn closed limit down and beans dropped a $1.18 a bushel! It was also tough to understand how or why the market totally ignored the very tight old crop corn and bean carryover numbers? According to USDA projections we are going to run out of beans before we harvest beans this fall in the fall here. Corn carryover is projected at around 1.1 billion bushels, barely pipeline levels.

In addition the USDA is projecting new crop carryover one year from now will also be very tight. Very tight even with a huge crop and yields for the crop growing right now. Plus, the market seems to have forgotten Brazil's second crop of corn has been hurt by late planting and a very dry growing season. Maybe the bears "ace in the hole" is the USDA Planted Acres and Stocks Report next Wednesday. Maybe the market is anticipating 5 million more corn acres were planted and 3 or 4 million more beans?

Click on the link and listen to Gordy discuss the grain and livestock market action last week and the USDA Reports next week!