Nice Week For Corn and Beans
It was a positive week for corn posting gains of 6 to 7 cents a bushel. December corn closed above the 40 day moving average. Plus, this was the third moving average corn closed above since the USDA July report. Michigan is dry along with the southwestern corn belt which was likely supportive. I suspect wheat rallying also helped corn. Another old saying in the grain markets is the best corn rally is lead by wheat. Hopefully that is true?
It was a strong week for beans too with beans gaining around 20 cents. Talk of an agreement to "agree" on some type of trade policy with the European Union got beans moving higher. Plus, the European Union said they were going to import more beans. Probably easy to say you are going to import beans now that our prices are about $2.00 a bushel lower than Brazil. Over the last couple months we have seen many one day rallies with no follow through the next. Could it be different this time?