Good week for Corn and Beans
I sure was surprised that we saw a rally in corn last week thanks to the USDA's Quarterly Grains Stocks report. Everyone expected a bearish report and it was actually friendly to bullish! Corn stocks came in 300 million bushel below the average trade guess. Corn rallied Monday and followed through Tuesday. We drifted lower the rest of the week but corn still gained about 13 cents on the week. On Thursday the USDA will release the October Supply Demand report. Could we get a second bullish USDA report?
The USDA's Quarterly Grain Stocks report was a little friendly for beans and the market responded with higher prices. By the close Friday beans had gained around 30 cents a bushel. Now it comes down to the USDA report Thursday and after that actual yield reports off the combine. The USDA and most traders think bean yields will be down just a bushel or two from last year. Most farmers think the yields will be down a whole lot more. Time will tell the story but then the next question is will the market believe it?