Minnesota Commodity Broker Says Corn and Beans Had ‘Okay Week’
Commodity Broker Gordy Kralovetz with Chiodo Commodities said in the Weekly Ag Market Recap that is was actually a pretty good week for corn and beans as we actually saw price gains. It "felt like maybe we turned the corner" with corn and beans last week. Finally there were widespread rains in very dry areas of Minnesota, Iowa and the Dakotas but corn and beans held which is encouraging!
It was also very helpful that export demand has really picked up the last couple weeks. In fact there was a daily export sales announcement by the USDA 13 of the last 15 days. Maybe the market is beginning to realize corn and beans supplies worldwide are tight. Gordy said he saw a report that cash corn prices in Brazil are above $8.00 a bushel.
When you look at the chart for November beans and December corn we have actually been range bound and going sideways for quite some time. It just feels like we have been going lower because the market was ignoring all the bullish news about the weather not only here but in Brazil and other countries around the world.
There were no major crop issues where production was down in a country 40 or 50 percent. But it seemed everyone had a weather issue that took production down a little. But yet the market is assuming record production? I suspect we will need to get well into harvest here before the market understands the drought did have an impact on overall production? Click on the link and listen to Gordy discuss the market action last week.
When You Are Having a Bad Day, Just Read These