Another Range Bound Week for Corn and Beans
It was another week corn followed the same pattern of losses early and by the end of the week clawing back into the range it has been in for months. It was discouraging because the export sales delayed by the shutdown were released Friday. Export sales for corn averaged just over one million metric ton each week for a total of 6.056 million metric ton. However, for traders the export sales was not good enough. Is anyone else feeling like we will never see a good rally in corn ever again?
It was exactly the same story in beans as beans managed to get back into the range Friday after the export sales. Beans export sales averaged just over one million metric ton each week for a total of 6.532 million metric ton. In addition China purchased 3.923 million metric ton. Like corn bean traders were not impresses with the export sales.
Remember early last summer when the Trade War with China began the USDA increased our carryover to about 950 million bushels because China would not be buying our beans? In those 6 weeks China bought about 150 million bushel so shouldn't the USDA be dropping the U.S. projected carryover? Plus, Secretary Perdue announced after the close Friday China committed agreed to buy another 10 million metric ton of beans. That is about another 350 million bushel of beans!