Market perspective

The grain markets have been in a downtrend for the last couple of months, pressured by very favorable weather in the central U.S. and continued selling by speculative funds. Traders were surprised that in the July crop report USDA increased acres and production despite the flooding and planting delays that the cornbelt experienced for most of the spring. Heading into Monday’s report, most traders were looking for a 14 billion bu corn crop and a 2 billion bu carryover for next year. Once again the market got caught leaning the wrong way.

The report showed a 185 million bu decrease in projected...