Markets Firmer Monday

Corn managed to close about a penny higher Monday. It was disappointing as corn was up 3-4 cents in the morning. Corn was supported by higher crude oil, the stock market and solid Export Loadings. Likely the most supportive factor was the Commitment of Traders Report, which revealed the funds had gotten very short last week. In fact, much shorter than traders anticipated, so there was probably some short covering Monday. I also read that the basis firmed up around the country as farmer selling dried up on this break. I still do not see a major rally in the cards because world corn stocks are very adequate. That is, if China has as much corn as the USDA thinks?

Beans also closed higher Monday, posting gains of 2-3 cents. Like corn, beans traded higher Monday morning. At one point beans were about 8 cents higher. The Commitment of Traders Report showed the funds had gotten a lot shorter last week so there was probably some short covering in beans Monday, too. Beans were supported by the same factors corn was on Monday. Export Loadings for beans were at 1.06 MMT, which was at the high end of trade expectations. I read on Pro Farmer the Brazil's bean harvest is estimated at 41 percent. Remember the USDA March Supply Demand Report will be released Wednesday morning at 11.