Market Report: Corn and Soybeans Higher

After losses of about 18 cents a bushel Tuesday after the USDA stocks and planting intentions were released, corn gained about 6 cents a bushel today. Maybe traders realized that corn acres will still be down from 2014 and the crop is not in the bin yet. In addition, corn planting is off to a slow start in the southern United States because of wet weather. The weekly ethanol stocks report showed a drop of 770,000 barrels, which indicates an increase in gas demand. I read on Pro Farmer that ethanol stocks are at the lowest level since January.

Soybeans had a very good day, gaining 16-17 cents a bushel on top of gains of about 6 cents yesterday. The dollar index was lower, which was supportive. Soybeans posted a bullish key reversal Tuesday, and today soybeans moved through the 21-, 40- and 50-day moving averages. Technically, the charts suggest a move to the 100-day moving average of $9.87 in the November Contract. Going forward, the real key to price direction for corn and beans will be the weather.