Some farm report on Friday. Corn was limit down. Limit down now as well. Futures markets probably just catching up to the cash markets. I have no idea what cash is trading at now, but you might see a couple more days of corn opening limit down.
I think you will see a few more hard down days then a consolidation near the end of the week. People forget that we still have to put the seed in the ground and the hot months of June and July are coming. So I am looking for an entry into the market.
"Some farm report" was the planting intentions going forward. There will be more corn planted than at any time since 1946.
Curious as to who those buyers were in the first 5 minutes when it opened at 6:30pm CST. I figured it would immediately open lock limit, but there were a few foolish buyers. The open book is showing 55,000 lots on the first ask level! (354.50 on May). I wonder how many leveraged longs are getting obliterated by this 10% drop in 2 days..
Corn was synthetically (via options) down 37 cents on Friday so I imagine buying it above limit tonight seemed like an edge of sorts. I know a guy who's short a bunch of 4.00 puts, he's a hurtin'...
Price discovery in U.S. corn is derived from the CBOT. Unlike financial futures markets, grain futures are the primary market. Call up an elevator in Storm Lake to forward contract and they'll quote you "we're 34 cents under Chicago Nov.........."