Corn and Beans Firmer Wednesday

Corn opened Wednesday a little lower but by the close managed to recover, posting small gains. The Dollar Index was lower, which supported both corn and beans. I have not noticed any change in the basis but I did read farmer selling has decreased since the USDA acres and stocks report last Thursday. The weekly ethanol production report showed ethanol production dropped by 16,000 barrels per day to 976,000 barrels per day. It was friendly that ethanol stocks dropped by 808,000 to 22.21 million barrels. It has been encouraging that July corn has recovered about one half of the losses after the USDA acres report last Thursday.

Beans traded not far from unchanged most of Wednesday before rallying near the close posting gains of 2-3 cents. Crude oil was higher and that supported beans as a did a report out of Argentina that heavy rains have caused losses and harvest delays. The charts are looking better for beans too. Monday there was a hook reversal lower and follow through Tuesday. However Wednesday there was a hook reversal higher. It does feel like there is not a lot of rally potential for beans with traders talking about carryover this crop year of 400-500 million bushels.