Markets Firmer Again Friday

Corn managed to close out the week Friday with 1-2 cent gains. For the week, May did gain about 7 cents. The funds were heavily short and there was likely some short covering. The Dollar Index was sharply lower Thursday, which helped with the short covering Friday. Corn is just below overhead resistance at the 50-day moving average, so that is the bulls' next target. However, the basic fundamental picture is still bearish with adequate stocks in the United States and South America.

Beans were the leader in the grains Friday, posting gains of 4-6 cents. For the week, May beans gained 17 cents. It was encouraging that May beans did close at the highest level in 2016. Traders have noticed the heavy rains in the United States Delta region and some are thinking maybe a few less bean acres this year. For May beans the 200-day moving average is at $9.05. May beans have not traded at that level since last July! Beans were supported by bean oil, which saw big gains last week, including another 50-cent gain Friday. In turn, bean oil is being supported by palm oil. The palm oil trees in southeastern Asia have been hurt by bad weather.