[Listen] Gordy Weekly Ag Market Recap Corn Fizzeled
The bean market and the charts from a technical point of view did okay this week but corn really fizzled. On Tuesday the USDA released the November Supply Demand report that could best be described as "Jaw dropping bullish. I read that on Tuesday the funds bought about 40,000 contracts. Then the selling began on Wednesday and continued Thursday by the funds. I read a report the funds sold 45,000 contracts.
It seems like that is accurate because December corn is right back to about where it was before the USDA Report. What happened? Maybe the funds just don't like to be long? On the positive side corn did hold the key moving average as support at least for this week. There was a lot of talk the last couple days about the COVID-19 pandemic and maybe more lockdowns not only here in the U.S. but also in many European Countries. When that happened last spring gasoline and ethanol demand dropped by about 50 percent.
It does not sound at least at this point that the Lockdowns will be that severe but it sure "took the bloom" off the corn market for this week after the bullish USDA report. On the other side, domestic and export demand for corn is very strong. Plus, South America is out of corn and beans and they are just planting their crop right now. In addition it is hot and very dry in most of Brazil and Argentina. Click on the link above and listen to Gordy talk about the ag markets this week!