[Listen] Gordy Ag Market Recap July 4th Turning Point?
It was another active week in the grain markets with the USDA acres and Grain Stocks Reports that were released Wednesday morning at 11:00. Both corn and beans were lower as traders expected millions more acres of corn and beans planted than the Perspective Plantings Report the end of March. The acres numbers were higher than last year they were much lower than the market anticipated. Plus the Grain Stocks numbers were just slightly lower than trade guess they were much lower than last year.
The result was corn up the 40 cent daily trading limit and beans were up sharply too. However, by the close Friday afternoon we lost pretty much all those gains and we were right back where we had started from. In addition the disappointing part was we sold off going into the numbers because they were going to be bearish. So, should we hope that the 4th of July long holiday weekend will again this year give us a change in market direction?
Really as Gordy always says, it is not the 4th of July holiday that many times changes market direction but the USDA Acres and Grain Stocks Reports that are released just before the 4th of July Weekend. You could surly make the argument that they were bullish, and the market responded that way until we sold off Friday. Plus, the second crop of corn in Brazil is much smaller than projected because of dry weather. Finally, pretty much all if the Dakotas, Minnesota and parts of Iowa are in a moderate to severe drought!
One of the reasons we sold off late last week was an increase in the chances of rain for the upper Midwest next week. I sure hope it holds because it is very hot, dry and windy this weekend! Remember, there will be no overnight session Monday. The grain and livestock markets will reopen Tuesday morning. Click on the link and listen to Gordy discuss the grain and livestock market action last week.
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