Markets Higher Wednesday!

It was the second day in a row corn closed higher, posting gains Wednesday of about 4 cents. It was a fairly quiet news day but still corn saw some strength. The outside markets supported corn and beans as the stock market and crude oil were both seeing nice rallies. I never thought I would want crude oil to move higher but crude sure seems to be tied to the grain markets these days. I read that farmers are still reluctant sellers at these price levels but there was good commercial buying. Good commercial buying tells me there is more export demand. Otherwise, why would we see commercial buying pick up?

Beans saw some support Wednesday, posting gains of 1-2 cents. Beans are still range bound but we are now at the upper end of the range. It is going to be tough to break through to the upside with harvest progressing in South America. Harvest is estimated at 16 percent. While traders know there is a big crop in South America, we are not hearing an actual yield reports. So, just how big is the crop? Is it as big as traders or the USDA think? As Gordy said on the air, if there were great yields that is all we would read about all day  long! So, while there is a good crop in South America maybe it is not quite as good as anticipated.