Corn and Beans Higher Last Week!
The 4th of July fireworks hit the corn market last week with corn 11-12 cents higher Friday. Corn was higher going into the stocks and acres report at 11 Friday morning. It seemed like the hot and dry forecast for this week was trumping the USDA report. In fact the USDA numbers were a little negative. Traders expected the corn acres this year to come in at 89.82 million. The USDA reported corn acres at 90.89. The average guess for the stocks was 5.160 billion bushels. The USDA reported stocks a little larger at 5.225.billion bushels. Traders understand hot and dry, and that is what they were trading last week!
Soybeans were sharply higher last Friday too. In addition to the hot and dry forecast, soybeans also had a friendly stocks and acres report. Most traders were expecting soybean acres would be higher than the March 1 planting intentions report, but that was not the case. The average trade guess was 89.95 million acres, but they were reported lower at 89.51 million. The average guess for soybean stocks was 981 million bushels but reported by the USDA at 963 million. So, with the weather, stocks and acres all bullish, beans shot up 27-30 cents. Plus both corn and beans were higher in the overnight session. We are in a 4th of July weather market!