Market Report: Corn Weaker, Beans Firmer

After corn was firmer two days in a row, today corn lost about 2 cents. The EIA report showed ethanol production increased 7,000 barrels a day to 950,000 barrels per day. For the USDA Supply Demand Report Friday morning at 11, a Bloomberg survey has the average yield at 166.7 bushels an acre, which is below the September USDA estimate. From a technical point of view, the charts look encouraging but you have to question how much of a rally corn can muster during harvest. Last year corn had quite a rally during October so it is possible. I am sure it will depend on Friday's report and just how big the corn crop is this year.

Beans had another OK day, finishing with gains of 3 cents. Beans again were challenging overhead resistance on the charts at $8.95 a bushel. One day last week the government in Brazil took steps to stop the fall in their currency. Since then it has increased and that makes beans from Brazil more expensive on the world market. That means of course that it make beans from the United States cheaper to foreign customers. Bloomberg did a survey and they expect the USDA to increase the average bean yield to 47.2 bushels an acre. The direction from here depends on the USDA  Report Friday and Export Demand.