Corn and Beans Struggle
Corn prices were under pressure last week but I guess that is not unusual as it is harvest time. December corn posted the lowest close since August 30, 2017. For the week corn lost 8-1/4 cents. Traders continue to talk about corn yields "better than expected." However, what farmers expected given the challenges of the growing season is likely much different than traders expectations! This reminds me of traders phrase 4 years ago when prices were much higher. All traders could talk about back than was "demand Destruction."
It was a difficult week for soybeans too as November lost 7-3/4 cents Friday and for the week 21-1/4 cents. Beans have been holding better than corn and I suspect many farmers were selling beans off the combine and planning on saving storage space for corn. So, there may be some validity to traders talking about "harvest pressure." Beans have been supported by great demand both domestically and from China. In addition to a very good weekly total there was a daily sale announcement of 14 million bushel sold to China Thursday and another 7.3 million Friday also to China.