The most notable feature of this week on the Chicago Board of Trade is the lack of trading hours.
I am remembering the traditional harvest schedule of my youth, when we hoped to have the crop in by Thanksgiving Day.
With the big grain crops, prices do not have a good reason to improve. There are hard decisions ahead for farmers.
The combination of a big harvest, falling storage space and the export market are impacting the price of corn and soybeans.
There is nothing in the market to indicate we could have high grain prices. We have just seen a bounce from awful prices.
As usual, it is all about the reaction to the USDA reports. In this case, the market did not seem to look at the numbers the same way Monday as they did Friday.
Phones are not ringing in cash grain trading offices across the Midwest, and when farmers get together, they talk about why they did not sell $4.50 corn when they had the chance.
U.S. grain prices continue to anticipate a huge harvest by going lower. We keep hoping the bottom is in on the charts, but then we slip lower.
The grain market is just “mostly dead.” We still have the race to find out what the average crop is. If we have over-estimated the size, prices will stabilize. If the huge crop is really rolling in, the worst is still ahead of us.
For the last month traders, processors, and farmers have been frozen by our limbo market, wondering how low we can go.