Market Report: Finally, Corn and Beans Higher

Corn finally closed about 4 cents higher today after a big move down last Friday and Tuesday. The weekly ethanol production report showed an increase in production of 3 million barrels per day to 947,000 barrels per day. Even though ethanol production increased, stocks decreased by 2 percent. Pro Farmer reported that the funds bought 9,000 contracts, representing 45 million bushels, of corn today. It was reported that the funds were big sellers on the break Friday and Monday.

Soybeans did well today, too, closing up about 10 cents. Pro Farmer reported that the funds bought 6,000 contracts of soybeans, or 30 million bushels. The dollar index was slightly lower this morning and dropped sharply lower after the Fed's comments this afternoon. The concern was that the Fed may soon increase interest rates, and that would cause the dollar index to move higher. Apparently, traders felt that the Fed will not raise interest rates in the next couple of months, and that caused the drop in the dollar index and a big rally in the stock market. There might have been a little short covering in corn and soybeans on thoughts that losses were too extreme. The key will be whether can we follow through higher tomorrow.