[Listen] Gordy Market Recap Corn Crashes
It was a really tough week for the corn market. We dropped though support and all the charts look quit negative. There was some rain on the radar for the dry areas of the Midwest that were very dry so maybe it is understandable? But then why did beans hold much better than corn? It could be that traders assumed that with this rain the corn crop is "made" while the key month for soybeans is in August. In addition it was not a general rain, there were winners and losers.
The updated drought monitor showed moderate to severe drought for the Dakotas, northern Iowa and almost all of Minnesota. I read one analyst that said there are 21 million acres of corn going into pollination in moderate to severe drought. That is not insignificant. But at this point the market is not concerned. I will give the bears the fact that export sales have dropped off a cliff. It sure looks like we will meet or exceed the USDA corn and soybean export sales for old crop and we have huge sales on the books for new crop already.
Could it be export sales for corn and beans have dropped like a stone is because the commercials know we have no more old crop stocks available? Plus, with the drought and less than ideal weather they are concerned about new crop stocks too? Click on the link and listen to Cordy talk about the grain and livestock markets last week.
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