Tough Week For Corn and Beans

Corn prices were looking pretty good coming into the week last Monday but it turned into a tough week for corn prices. By the close Friday, March corn lost about 11 cents a bushel. The weekly charts did not look good either. Corn posted a bearish outside breakout to the down side taking out last week and the previous week's low and high. Good export demand continued to provide support under the market as traders focused on using up the record corn crop. Very soon much more attention will be put on the developing corn crop in South America.

Beans looked good too coming into the week Monday. But like corn, beans turned lower. By the close Friday, January beans were 18 cents lower for the week. Traders continue to fret about the great export demand for beans dropping in 2017. It will likely stay strong as it does every year until late February or early March when the new crop of beans is available from Brazil. Bean oil was the strength in the bean complex posting monthly highs Friday. Remember there will be more demand for bean oil to make biodiesel. In addition bean oil is a replacement for decreased supplies of palm oil. This demand for bean oil should help support bean prices.