Good Week For Corn and Beans
Corn prices saw a good turn around last week. Early in the week corn was just barely holding key support. By the close Friday corn was up around 3 cents and July closed 13 cents higher on the week. July closed at the highest level since last August. The corn crop has been hurt in Argentina and the second crop of corn in Brazil is struggling with dry weather. It has not rained for 2 weeks and the forecast is dry for the next week. Remember, about 75 percent of Brazil's corn production is from their second crop after beans.
Beans struggled early last week too. However, beans closed 11 to 17 cents higher Friday and for the week gained 16 cents. Soybean meal prices were $10 to $14 a metric ton higher Friday and that helped support beans. In addition a trade delegation led by Treasury Secretary Mnuchin left for China. The hope is that a potential trade war with China can be averted. In addition there was an accident at a port in Argentina that will take it out of service for up to one year. Argentina is the world's largest bean meal exporter so there are thoughts more business will come to the United States.