Corn Firmer Beans Weaker Last Week

The grain markets looked encouraging a week ago, maybe not so much this week. Last week corn did gain about 2 cents a bushel after the bullish key reversal the previous week. With the slightly higher weekly close the bullish key reversal is still valid but with such small gains it looks pretty weak. The Commitment of Traders Report showed that the funds piled on to the short side. As of last Tuesday the funds sold 34,227 contracts and were short 170,626 contracts.

Beans struggled last week closing about 17 cents lower. That was really discouraging considering how promising the previous week was! The beans were doing okay last week until Friday when President Trump tweeted that he does not need an agreement with China before the next election. That took beans around 10 cents lower late Friday. The funds covered a lot of their short contracts last week! The funds bought back 43,556 contracts but a still short 48,181 contracts.

I just have a hard time believing corn and soybean yields will measure up to the market's expectations given all the weather issues we have seen this year? We will know more when we get well into harvest.