Corn Holds and Beans Struggled Last Week
Corn managed to hold support last week and remained in the range it has been in for quite some time. It was impressive with corn down 4 to 5 on the open at 8:30 to close around a penny higher! Deliveries against the July corn contract have been light. Plus, a number of days the July contract was much higher then the deferred contracts. That indicates very tight supplies of corn. Plus, there are reports of large basis improvements, especially in the Eastern corn where in places there was a positive basis.
Beans struggled last week in spite of the shocking acres number from the USDA. The corn acres were well above what traders expected and that is all you read and hear about. The bean acres was a shocker too. The USDA said farmers planted 4 million fewer acres than traders anticipated. Yet, it is the beans that are working lower. The Export Sales Report was also supportive to beans. Export sales were 867,564 MT which was a 13 week high. On top of that 607,328 MT went to China. Even with the trade war?