Corn and Beans Higher Last Week
Finally corn managed to post a higher weekly close with gains of around 14 cents. Plus, corn managed to close higher every day last week. Those gains came as corn saw lower weekly closes for 6 weeks in a row. It looks like we put in a bottom on July 12, the day of the USDA report. Traders are thinking that the corn crop condition ratings could continue to drop because of hot dry weather in areas of the U.S. plus there is growing concern about hot and dry in Europe and the Black Sea regions.
After 6 down weeks beans managed to close higher last week too with gains of about 34 cents. Maybe all the trade war talk and China tariffs are in the market? There are reports that even with the 25 percent tariff U.S. beans are about the same price as Brazilian beans. In addition Brazil still has the problem of getting the beans to the export ports with trucker unrest and poor roads. Traders think the bean ratings may have peaked and farmers are reluctant sellers. Maybe the lows are in place for beans too?