Corn and Beans Last week Uneventful
Jerry Groskreutz / Townsquare Media
December corn did close about 4 cents lower last week but you could look at it as a major moral victory with harvest pressure. I will give the bears the argument that corn export demand right now is weak. We are about 50 percent of the pace we were on last year at this time. However, last year South America had a poor corn crop. That meant importers of corn had to come to the U.S. We were the only country in the world with corn supplies available!
Typically South America is the go to country at this time of year. In a normal year our corn export sales are slow during our harvest and then really pick up in January. It would seem like we are just back to a more normal year of corn exports. South America produced a good second crop of corn this year that is available to the world market right now!
It was a boring week in beans too. Beans in the November 2019 contract did close 13 cents lower Friday. That was likely because it was the last day of trading for the November 2019 beans options. Bean prices migrated to the $9.20 strike price. Traders are very fixated on a trade deal with China. However, China is still buying a lot of beans from the U.S. Traders are also focused on the November USDA Supply Demand Report and if the USDA lowers the projected corn and bean yields?