There is a school of thought that says when facing bad news it's best to get the worst over with, so you can leave the episode behind and move forward. This appears to be the philosophy bulls in the corn market hope will work as 2009 trading begins in earnest.
Certainly USDA had bad, though not completely unexpected, news in its January crop report last week. The agency increased production and decreased demand across the board for ethanol, feeding and exports, swelling Sept. 1 stocks by more than 300 million bushels. Futures gapped sharply lower on the open and quickly locked down the 30-cent trading limit, falling more than 50 cents in all before ending the week with a rally to recoup some of the losses.
To read Bryce Knorr's complete weekly corn review, click HERE.
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