Monday Market Report: Corn Higher, Beans Lower

Corn had a good day Monday, posting gains of 4-5 cents. December saw its highest close since October 8. Corn also closed above the 40- and 50-day moving averages. The 21-day moving average held as overhead resistance kept corn prices from running further. The only real news I saw that would explain the small rally is that harvest is winding down and farmer selling has been very light. The biggest factor helping corn was likely the big rally in wheat, which spilled over into corn. Wheat was 17-18 cents higher.

Beans really got hit Monday, with losses of 10-12 cents. Most of the pressure likely came from fund activity and money flow. The funds were buying corn and wheat so they were selling beans. No matter what the fundamentals would indicate it seems when the funds are buying two commodities they sell one. Monday beans took the brunt of the selling. Bean harvest is nearing the end at 87 percent complete. On the negative side, traders expect the USDA to raise bean production one more time in the November report.