Market Report: Softer Friday

It was a fairly quiet day again Friday as corn closed about a penny lower. For the week, March corn lost 7 cents. The Dollar Index was up about 600 points, which kept a lid on any corn rally, however the Dollar Index is still at its lowest point since last October. It is frustrating that when the Dollar Index is lower traders don't mention it but when it recovers a bit that is all you hear about. We did get through the USDA Report on Tuesday without a selloff even though the USDA did increase carryover slightly and reducing demand.

Beans saw two-sided trading Friday before finishing the week with losses of about a penny. For the week however March beans gained about 5 cents. Bean oil is the bright spot of the bean complex as it is a substitute for palm oil. Palm oil is the world's most popular edible oil and palm oil traded at its highest price in 20 months due to production concerns in Malaysia. Higher bean oil demand may help support beans a bit but the old rule is bean meal demand is what drives bean prices, not oil. The big cloud over the bean market is the South American harvest that is really ramping up. Even though there were some weather issues, they will still have a very large crop that is hitting the world market. Remember the markets are closed Monday due to the Presidents Day holiday and will resume trading Monday evening.