It was after the USDA Outlook Forum that was not very bearish I though the bears had nothing left to talk about. I should have know better. They had two factors this week that I guess I did not see coming. First, the weekly ethanol production report released every Wednesday by the Energy Information Administration. Ethanol production dropped by about 30 percent and the bears took that as a sign of the end of the ethanol industry. Maybe ethanol production slower because of the severe winter storm that hit Texas and parts of the Midwest?

Thursday the export sales for corn and beans were around marketing year lows. So, the bears assumed that there is no more demand for our corn and beans. Maybe we don't have anymore to sell? The USDA has projected we will have a bean carryover of 120 million bushel which is one of the tightest stocks to use ratios in history. Plus, the USDA projected that we will import 70 million bushel of beans from South America to get to the carryover of 120 million bushel.

Corn and beans got hit pretty hard Thursday and were down Friday until shortly before the close. In the last few minutes they came roaring back and closed slightly higher. Click on the link and listen to Gordy discuss the market action last week.