Corn and Beans Higher Last Week
It was just a week ago the USDA raised the corn and yield estimates for this years crop. Corn and beans were down a lot and as we began this last week everything looked very bearish. However, by the close of the week corn had gained 6 to 7 cents a bushel. Corn seemed to find support from very good demand. Even with the higher USDA projected yield the carryover for new crop corn was about unchanged. That allowed corn to stabilize and actually rally back to about where it was before the bearish USDA report.
Even with the higher USDA bean yield estimate beans rallied about 31 cents last week! Late in the session Friday there was a news story that U.S. and Chinese negotiators were building a path to resolve the trade dispute by November. In addition there was an announcement by the Mexican Economic Minister that a trade deal with the U.S. was expected as soon as the middle of this week! If there can be a deal with China and Mexico does that mean beans rally about $2.00 a bushel and corn 70 cents? That is how much corn and beans prices dropped after all this trade war and tariff talk started!