After finishing last week at new all-time highs, corn prices pulled back hard on Tuesday, only to consolidate the remainder of the week. For the week, Sept. 2012 futures were down $.26, while December corn was down only $.02 ½ per bu. We continue to witness evidence that demand for old crop is being rationed as weekly ethanol production was the lowest in over two years, while export sales were negative for the week. Selling of new crop remains limited as lower crop ratings continues to lead to lower yield expectations.
Soybean prices were on the defensive all week with both old and new crop futures down $.85 per bu. Although rainfall totals remain quite variable, some areas received in excess of an inch of rain this week, which could final lead to improved crop ratings, or at least some stability in next week’s report following the recent plunge. Speculative traders were also net sellers during the week as last week’s CFTC report confirmed a near record long position.