Market Report: Corn and Beans Close Friday Sharply Higher

Corn extended gains Friday closing 8-10 cents higher. December corn traded as high as $4.06 and a half, which was a price December had not traded at since April 8. Corn closed above the 50 percent retracement. Corn also traded above the 200-day moving average, however it did not close above it. For the week, December corn gained 33 and one quarter cents per bushel, which was impressive. It is likely the funds that were extremely short for quite some time continued to cover their shorts. Market action this week will be determined by weather and the stocks and acres report from the USDA on Tuesday.

Beans had a good day Friday, posting gains of 2-11 cents a bushel. For the week, July beans gained over 30 cents per bushel. One might think that the market is trying to encourage farmers in Kansas and Missouri to continue to plant beans. The last report I saw showed about 8 million acres of beans had not been planted because of too much rain. Beans also closed above the 200-day moving average.