What A Week For Corn Prices!
Monday morning shortly after the open of the day session corn was 6 to 7 cents lower. I just kept thinking how much lower can corn go? I guess not much because corn turned around and closed about 5 cents higher Monday. By the close Friday corn had gained about 40 cents a bushel from the low Monday! It seemed the market was shocked that the planting progress report Monday afternoon showed only 30 percent of the corn was planted.
I guess the bearish traders do not spent much time each day watching the weather radar and the forecast. I could see the storms moving across the corn belt all week so you knew farmers were not getting a lot of planting done. So, now some traders are thinking we could see 4 to 5 million acres of corn not getting planted and what does still get planted will yield about 2 bushel below trendline. If this played out it would take around a billion bushel off the U.S. corn carryover.
Beans did close a little higher for the week but not like corn. Bean traders are thinking many of those acres of corn that do not get planted will be switched to beans. That of course will add to an already huge carryover. Then you add in the trade war with China and talks not going well and it still seemed like the bears are in charge yet!