Corn and Beans Edge Higher last Week
Corn managed to gain a couple cents a bushel last week which was a major victory given how bearish the news has been. The bears were assuming we would never grind another bushel of corn for ethanol. For the second week in a row ethanol production actually edged higher. Livestock are still being fed and meat processing plants are increasing production. We have a long way to go yet but we are going in the right direction. Plus, Chine bought a lot of U.S. corn last week!
Beans too managed to gain a few cents a bushel last week too. China did buy beans from the U.S. even with the really cheap Brazilian currency compared to the U.S. dollar. On May 5, 2020 the funds were long 8.908 contracts and bought another 10,000 contracts last Thursday. The cold weather for the U.S. over the weekend caught traders too and was supportive. We have a long way to go but maybe we are starting to come out of the COVID-19 pandemic.