Good Week for Corn and Beans
Even with the lower close Friday for corn and beans, it was still a very good week. July and December corn gained around 23 cents a bushel. Plus, corn reached its highest level in many years! However, it was disappointing that corn could not close above $4.50 a bushel. There is no question that the rally the last couple weeks is encouraging farmers to plate corn even though it is late. How many acres will be planted? What will the yield be on the corn that did get planted with all the rain and flooding? No one knows at this point.
Beans had a good week too even though beans lost 10 to 11 cents Friday. Late Thursday afternoon the Trump administration announced a 5 percent tariff on any products imported from Mexico unless Mexico stops all the immigrants moving through Mexico from Central America. The tariff will increase in 5 percent increments up to 25 percent. Again it looks like farmers are caught in the middle. Market direction this week will still be determined by the weather. How many acres of beans will get planted and how many acres of intended corn acres will be switched to beans?