Corn and soybeans took steep loses on Monday profit taking set in after a hitting a four month high, coupled with a stronger dollar and "improved" weather forecast for next week. Dollar bounced from 14-month lows, sparking a broad-base sell-off in commodities. Funds sold an estimated 13,000 contracts today. The USDA released their weekly crop progress report which put US corn harvest at 20%. Traders had been expecting 20% to 25% for this week, up only slightly from last weeks 17%. The 5-year average for corn harvesting at this time has been 58%. With the Federal Reserve's benchmark interest rate holding steady at a record low of near zero, analysts say the dollar has more room to fall. Low interest rates can spur economic activity, but they also tend to weaken a nation's currency as investors search for higher returns elsewhere.
USDA said soybean harvested was at 44 percent, an increase from 30 percent last week, but still below 80 percent averaged during the previous 5 crop years. Corn harvested was estimated at 20 percent versus 17 percent last week and a 58 percent historical average.
Chris Spurlock
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