Corn and Beans Show Signs of Life
Corn prices were range bound last week as December corn lost just 1-1/4 cents. However, Friday morning corn traded up 5 to 6 cents a bushel and broke through the 21 day moving average. Corn dropped back down and closed out the week exactly on the 21 day moving average. As we move forward yield reports will likely provide direction. In addition Friday the USDA will release the Quarterly Grains Stocks report which could provide a bullish or bearish surprise.
Beans closed 13-1/2 cents higher Friday and for the week November gained 15-1/2 cents a bushel. Beans rallying as harvest is just getting underway is a little unusual. Much of the Midwest has been dry recently. This was not ideal weather to finish the bean crop. Maybe the "market" is beginning to factor in lower yields? If we take bean yields down just a couple bushel an acre from the USDA estimate of 49.9 bushel an acre the carryover would get very tight.