Market Report: Corn Firmer, Beans On Fire Wednesday

Corn closed 3-4 cents higher Wednesday. Corn has closed higher nine of the past 10 days. It is not rocketing higher like beans but it is encouraging that it at least can rally a little bit. Corn was being supported by longer range forecasts of hot and dry conditions even though rain was in the short-term forecast. A few traders were talking about Brazil's second crop of corn continuing to get smaller. It has been quite warm and dry for most of the season and now there was a threat of frost and freezing temperatures.

Beans were up over 40 cents a bushel for a while during the day session but closed with gins of 18-36 cents. Bean meal was leading the complex higher again closing $9 to $10 a ton higher. Crude oil was higher and the dollar index was lower, which helped support beans. The big factor though was fund buying. Money continues to flood into the bean complex. However, there is a fundamental reason that got the funds started buying beans. Argentina lost a chunk of their bean crop because of flooding rains at harvest. Add on the hot and dry forecast in the United States and you have more buyers than sellers.