Market Report: Corn and Beans Follow Through Higher

Corn had another good day after Friday's double-digit gains. It is amazing that corn has closed higher six days in a row and closed above the 100-day moving average. The market is still oversold, there is likely some short covering as the market digests some very early harvest reports. It appears the market senses that the corn crop is not as large as traders thought it was. In addition, farmers have probably been very reluctant sellers at the low price levels.

Beans had a remarkable recovery Friday after being 18-20 cents lower, and followed through higher today, posting gains of about 10 cents a bushel. On the charts, beans closed above the 20-day moving average. You cannot say the harvest lows are in, but so far it looks like we have seen the harvest lows. Follow through tomorrow on contrary Tuesday would likely confirm the harvest lows are in.