Corn and Beans Firmer Last Week
It was a minor victory but corn managed to gain around 2 cents a bushel last week. Corn again went down and tested the upward channel line of support in the March at $3.76 and recovered. Given all the bearish news and coronavirus maybe it was a major victory? All we have heard since last fall was terrible corn export demand. You cannot argue because corn export sales are about 50 percent of year ago levels. However, we have seen corn export sales of around 40 million bushels each of the last 3 weeks so it is I=getting better.
Beans in the nearby March contract gained 9-1/2 cents last week. It was a victory after March beans lost about 30 cents a bushel last week. Even though China has purchased about 1/3 of the weekly bean export sales bearish traders are not pleased. All you read and hear is China has to buy more U.S. beans. All the bearish traders are talking about coronavirus in China and African Swine Fever wiping out about 50 percent of China's hogs. That will not help the U.S. export beans to China. Plus, South America is harvesting a good soybean crop that is hitting the world market.