Corn and beans challenged contract highs last week and even broke through but did not close above those levels and that was a little bit disappointing. However, sometime markets going sideways is okay too. Remember the old saying in the grain markets, "markets cannot go up every day and markets cannot go down every day either." However, when you raise corn and soybeans it does seen like they can go down every day!

 

After the big rally that we have seen in corn and soybeans going sideways is a good way to correct the technical overbought condition of the markets. Sideways action for a few days is better than a big drop in prices right? Plus you have to remember that as Gordy says "the real world is still out there." That means the weather in South America is still generally hot and dry and China has and still is buying a lot of U.S. corn and beans. Click on the link above and listen to Gordy talk about the markets last week

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