Corn and Beans See Nice Gains Last Week
It was a good week for corn prices as we saw gains of around 7 cents. It helped that there were only 2 corn contracts delivered on first notice day in the December futures contract. If we had huge corn supplies you would have expected more deliveries. In addition there was anticipation that President Trump and the President of China would get some sort of agreement on the trade war at the G 20 Summit in Argentina. Apparently ethanol margins are in the red and that may be causing traders to question if corn demand for ethanol demand will decrease.
Beans closed Friday with gains of 6 to 7 cents. Plus it was the third higher close out of the last four sessions. Later in the week beans closed above a number of critical moving averages. Beans were supported last week by anticipation of some type of truce in the trade war with China. President Trump was going to meet with the President of China at the G 20 Summit in Argentina. We do not know a lot of details yet but there was some type of agreement or 90 day cooling off period. At least bean traders liked it because beans were 17 to 20 cents higher!