Corn and Beans Higher Last Week
The gains were not large but corn saw prices increase around 4 cents a bushel last week. More importantly new crop December saw a contract high weekly close which was very encouraging. There was not a lot of new news last week other than the weather. The forecast was calling for very high temperatures for the Memorial Day weekend and into this week and that seemed to have the market on edge. Plus the weather forecast was for more dry weather in Brazil for their second crop of corn.
Beans closed 4 to 6 cents higher Friday but the real story was the weekly charts. Last week beans gained 45 cents a bushel in the new crop November contract! China stepped back into the market and bought U.S. soybeans which was very supportive after big cancelations the previous week. Traders appear to put putting some weather premium into beans with the very hot weather forecast. Plus there is a truckers strike in Brazil disrupting bean movement to the ports. Maybe we can keep the rally going this week?