Corn Unchanged Last Week Beans Lower
Corn closed out the session Friday unchanged on the week. It could sure be considered a victory for the bulls. The bears were talking about the USDA Report calling for a new crop carryover of 5 billion bushels. Maybe a new crop carryover of 3.3 billion wasn't so bad. Plus for old crop the USDA is calling for a carryover of a little over 2 billion bushels. I have complained for a long time about the USDA being a demand bear. So, I was surprised when the USDA did not drop feed, exports or ethanol demand very much.
By the close Friday beans were only down about 12 cents on the week. China again bought U.S. beans but not in large enough amounts to keep the bears happy. Looking at the USDA Report it was not nearly as bearish as it could have been and that helped beans stabilize. The bears continue to talk about the Brazil currency continuing to set record lows compared to the U.S. dollar. That makes beans from Brazil cheaper on the world market compared to U.S. beans. That is true but what difference does it make? Brazil always exports all their beans onto the world market anyway?