How Much Worse Can it Get?
How much worse can it get? That was the question that was on my mind all last week. It seemed like there was going to be no agreement with China on the trade war, export sales on Thursday were at a marketing year low or close to it and the USDA May Supply Demand Report was due to be released Friday morning at 11:00. I was pretty sure the USDA report Friday would be the bears "ace in the hole" as expectations were it would be quite bearish.
Each day last week I found out it could get worse and the USDA report was quite bearish too! For the week July corn lost 19 cents a bushel and December was down about 16 cents. The USDA projected the 2018/19 carryover at 2.095 billion bushel and the 2019/20 crop year at 2.485 billion bushel.
It was even worse in the bean market as July beans lost 33 cents a bushel and new crop November lost 33 cents. The USDA projected carryover for the 2018/19 season at 995 million bushel and the 2019/20 marketing year at 970 million. So, the question again this week, how much worse can it get?