Frustrating Week for Grain Prices

It was a tough week for corn prices last week. Thursday and Friday corn had nice gains only to see them disappear two days in a row. There was rain in the forecast for the Northwestern corn belt but it was less than predicted. That did not even seem to help because temperatures are forecast to be cooler. In traders minds dry does not matter a lot if it is not hot and dry. Traders are concerned about the 2.1 billion bushel carryover here in the United States and the second crop of corn being harvested in Brazil.

Later in the week beans held pretty well but November did close 5-1/2 cents lower for the week. The dry forecast has traders more concerned as beans are in the critical flowering and pod filling phase. As the old saying goes "the bean crop is made in August. With the drop in crop ratings last Monday traders are thinking maybe we need more weather premium in bean prices? I guess that will be determined by this afternoons crop progress report.