Market Report: Beans Firmer, Corn Weaker Wednesday

Corn traded firmer for most of the day Wednesday but kind of fell apart shortly before the close, posting losses of about 3-5 cents. There was likely some margin call selling after the big collapse earlier in the week. It appears the funds that were very long last Friday are liquidating. This could get really ugly if they decide to get as short as they were long. The longer term weather forecast is still calling for warm but their was rain on the radar Wednesday and that was the focus of traders. Ethanol production fell 51,000 barrels per day to 962,000 barrels per day last week. Remember though the previous week ethanol production was at an all-time high.

Beans managed to firm up a bit Wednesday, with gains of 4-7 cents. We did trade down to the 21-day moving average and found buyers. The dollar index was a little lower and there was talk of more export demand. It does seem a little unusual that beans are holding much better than corn. Corn had a small rally that has been pretty much wiped out in a couple of days. Beans have had a huge rally and are holding much better. You would sure think that support is coming from great export demand.