Another Typical Week for Corn and Beans
It was another week when I wondered if we can ever get a big corn rally again? If we cannot get one going this year with the weather it seems like there is no hope. The bleeding in the corn market did slow down this week as corn only lost a couple cents a bushel. Supporting the corn market is an extremely tight basis for harvest time. It seemed on Friday the usual "game playing" went on as December corn options expired on Friday.
It was a tough week for soybeans as the funds continued to liquidate their long positions. Plus, there is not a phase one trade deal wit China. Beans lost 19 to 21 cents a bushel last week. January beans also closed under support at the psychological $9 a bushel. A very tight basis is supporting beans too. I cannot ever remember a 20 cent basis at the crushers in Mankato and Fairmont in the fall. I am not sure how to respond to the cash price of beans being 40 cents higher now than in January? Sure, you think you should sell some, but by early winter could bean prices be higher?