Markets Closed for MLK Day
The grain markets are closed today in observance of Martin Luther King Day. Trading will resume this evening with the overnight session. The USDA report on Friday was not the market mover it normally is. The USDA did increase the yield on last years crop by 1.2 bushel an acre to 176.6 bushel an acre. Carryover increased by 60 million bushel to 2.477 billion bushel. The quarterly grain stocks came in at 12.516 billion bushel which was 130 million bushel about last year. All those numbers mean it is going to be difficult to see a significant rally in corn unless there are big weather issues in South America. It was a moral victory that corn only lost a couple cents on Friday and for the week only 5 cents.
The USDA on Friday did confirm large bean carryover at 470 million bushel but still beans saw gains Friday of 10 to 12 cents a bushel. Plus on the charts beans saw a bullish reversal. Beans were oversold since we saw the highs in early December. The USDA actually dropped the yield by .4 bushel an acre to 49.1. Grain stocks came in at 3.157 billion bushel. That is the first time in history that bean stocks were above 3 billion bushel. However, that was 30 million bushel below trade expectations. While demand for beans is very good like corn, beans will need weather problems in South America to see a sustained rally.