Corn and Beans Firmer Last Week
Corn managed to close 2 to 3 cents higher Friday and for the week new crop December gained 15 cents. Friday was the sixth straight session with a higher close. For corn the USDA June Supply Demand report was a "non-event." The carryover for this year was left unchanged at 2.295 billion bushel and this years production estimate was also left unchanged at 14.065 billion bushel. With the record amount of replanting in the corn belt this spring, some prevented plant and switched to beans and now the hot and dry forecast a few traders thought the USDA could have dropped the lofty yield estimate. The USDA did not see it that way!
Beans closed higher too Friday posting gains of 3 to 4 cents. It was also the sixth day in a row beans closed higher. More importantly, new crop November closed above the 21 day moving average for the first time since the middle of May. In the Supply Demand report the USDA left this years production estimate unchanged at 4.255 billion bushel but did raise projected carryover by 15 million bushel to 450 million. The USDA did raise Brazil's crop to 93.1 million metric ton. So, now it all comes down to the forecast and the weather.