Corn and Beans Finish the Week Higher
Corn managed to close out last week higher with gains of around 3 cents a bushel. It looked pretty bleak after the big unexpected sell off on Tuesday. However, later on in the week there were reports that the trade talks with the United States and China were going well. Bloomberg reported that by 2024 China proposed a 6 year plan to eliminate the trade deficit. That would mean China would buy almost a trillion dollars of U.S. products. That was enough to push corn slightly higher on the week!
Beans sold off too on Tuesday and with the talk about the Bloomberg report managed to close with gains of 3 to 4 cents on the week. The weather in South America is also very supportive to the bean market. Argentina is too wet and parts of Brazil are very dry. In addition the forecast is for warmer and dryer conditions. The bean crop and the first crop of corn is now in a key development stage.
Remember that the grain markets are closed today in observance of Martin Luther King Day. The grain markets will open this evening at the normal time for the overnight session. We could see some excitement because the rest of the world will be trading today as this is just a U.S. Holiday!