Corn and Beans Show Signs of Life
By the close Friday corn showed some signs of life after the washout during the week. There was friendly news on the trade front with the signing of the U.S. Mexico Trade Agreement and also news that there was a phase one trade deal with China. In addition there was talk that Brazil needed to import corn from Argentina to get by until harvest because their aggressive export pace has drained their supplies. The corn rally late last week got started when Mexico bought huge lot of U.S. corn.
Beans managed to post gains last week too. It was actually the second week in a row beans closed higher! That came in spite of the funds selling over 29,000 bean contracts last week! The announced trade deal with China sure helped beans along plus great domestic and export demand. Plus, the weather in South America is a little less than ideal. In addition there are some beans in the U.S. unharvested standing in snow. Maybe the market is beginning to pay attention to the real world?