Are the Lows In For Corn and Beans?
I am not sure the bears are ready to give up just yet, but it does look like the harvest lows may be in for corn. The December corn chart has a Head and Shoulders bottom formation in place. It was confirmed late last week when December corn broke out to the top side. It sure helped when the USDA gave us a somewhat friendly October Supply Demand Report. Traders were expecting the USDA to raise the National Average Corn Yield. The USDA actually cut the yield slightly!
Beans do not look as promising as corn. However, even though the USDA raised the National Average bean yield beans firmed up Thursday and Friday! The heavy rain and snow that is delaying harvest was supportive and even with the Trade War beans are being supported by good demand. The weather forecast looks nice for the next 10 days so maybe soon bean harvest can get going again.
Traders do not seem to think this miserable weather has had any impact on corn or soybean yields. However, it seems to me that all the snow and rain would affect the yield at least a little. I did read that the big storms that blew over a lot of corn was too late for the USDA to factor in the October report. It may be reflected in the November report.