Corn and Beans Higher Last Week
Since the August USDA Supply Demand Report corn has been under relentless pressure. However, corn did show signs of life last week by posting a bullish key reversal Friday off the morning lows. In addition corn held above the ten day moving average. Late last week a couple private advisory services released yield projections of around 166 bushel an acre which was below the USDA August estimate of 169.5 bushel an acre. This has traders thinking the USDA might be right with their yield projections as they are "in the ball park" of the USDA estimate.
Since the August USDA report beans have held in a bit better than corn and showed more signs of life last week. Beans gained 5 cents a bushel and saw the highest weekly close since August 10th. Friday was the second day in a row beans closed above the twenty day moving average. Beans have not traded above the 20 day moving average since July 28th. Some of the support for corn and beans may be the cooler forecast for the first couple weeks in September. The key will be the weather in September and how this crop finishes!