Tough Week For Corn and Soybeans

Corn began the week Sunday night and Monday morning higher but closed lower every day last week. For the week, corn lost 10-11 cents a bushel. Corn is just below the 50 percent retracement from the August low to the February high. The funds had been slightly long but spent the week getting short. We might see some short covering this week at traders square positions before the USDA acres and stocks report Friday morning at 11. That is unless they are convinced it will be a bearish report!

It was not a good week for beans last week. Friday they lost 11-15 cents a bushel. May closed at the lowest level since the middle of October. Traders continue to believe the bean crop in Brazil and Argentina is getting larger and that does not help bean prices here. In addition they are convinced farmers will plant a lot more beans this year. So, they are expecting a very bearish acres report from the USDA Friday. We continue to see very good demand for beans in the world export market. That is keeping carryover estimates in the United States from getting even higher!