After corn fell to one-month lows on Tuesday, corn prices clawed back on Wednesday. September corn futures closed up 6 cents and the December contract finished the day 5 cents higher.
“Yesterday sharp losses in corn futures were spurred by rumors that China had canceled up to 1 million metric tons of old crop corn buys, and today’s rumor that China was back buying old crop corn today was little more than a band aid for price action,” Davis Michaelsen told Chip Flory on AgriTalk. “December corn futures opened in near steady and fell sharply to post a low within a quarter of a penny of $5.”
Soybean prices continued to slip on Wednesday, and Michaelsen says much of that is due to traders focused on the 2021 crop potential.
“The lack of a threat to the to the 2021 bean crop has erased much of the buying interest for soybeans,” he said. “Traders are already beginning to anticipate a bigger 2021 bean crop than projected in the supply and demand report on support for more planted acres.”
Listen to Wednesday’s AgriTalk as Flory talked to Naomi Blohm of Total Farm Marketing by Stewart-Peterson about the commodity price action this week.
