Corn and Beans Sharply Higher Last Week
It was a great week for corn as it gained about 37 cents a bushel in the old crop and 30 cents in new crop December. Finally the market cares about delayed planting with all the rain! I am sure the market cared because the USDA adjusted production for this crop year in the June Supply Demand Report! The USDA dropped the projected planted acres by 3 million and cut the projected yield by 10 bushel an acre. That dropped this years corn production by 1.4 billion bushel. That is the largest USDA cut in production from one month to the next that I can remember.
Soybeans had a pretty good week to gaining 40 cents a bushel in the November new crop. Both old crop July and New Crop November closed above the 100 day moving average. That has not occurred since late February. Soybeans have not seen the strength that corn has because the USDA is still projecting a carryover of a little over 1 billion bushel. However, the last planting progress report showed over 30 million acres of beans still were not planted. Even though the USDA did not make any adjustments to soybean production in the June report it is likely they will be coming in July!