Market Report: Another Higher Close for Corn and Beans Wednesday

Corn had one of its best days of the year, posting gains of 5-7 cents. Wet weather in the forecast will continue to delay corn planting in the Eastern and Southern corn belts. That has traders thinking some of those intended corn acres will be switched to beans. Also very supportive were some early yield reports from Brazil on their second crop corn. I saw one at 85 bushels an acre, which was well below expectations. Typically second crop corn acres were very limited because this is their dry season. The past three years they have had more moisture and corn acres expanded dramatically. Apparently it is not working this year!

Beans exploded higher again Wednesday with gains of 16-31 cents. Beans were led by the meal, which was more than $18 a ton higher. Crushing plants are shutting down for routine maintenance. I read meal inventories are tight and end users were caught off guard and do not have their needs covered. I am not surprised because we are supposed to have a bean carryover this year of more than 400 million bushels. Why would you lock in your meal with huge carryovers? Maybe the carryover is not as high as the USDA projected?