Markets Close Out Week Higher

Corn did manage to close 1-2 cents higher Friday after the big drop Thursday. For the week, corn lost about 16 cents. The big shock last week was the USDA indicating farmers will plant 93.6 million acres of corn this year! That is up about 5.5 million acres from 2015 and well above the highest guess. The funds were record short going into the report and that made their positions even more profitable. So, maybe they will start to buy back some of those shorts? That may be why corn was a bit firmer Friday. Even though the market will trade that acre number of 93.6 million, the weather will determine if we get all those acres planted.

Beans had a good day Friday, rallying late in the session to close about 7-8 cents higher. For the week, beans gained about 8 cents. The funds are long beans and likely added to their long positions after the big USDA report Thursday. The USDA bean acres this year and even the stocks were neutral to a little friendly. I am not sure how far beans can rally without corn following along? This might be dreaming, but maybe the Dollar Index can continue to drop, the funds continue to cover their short positions in corn and then both corn and beans can rally?