Markets: Corn and Beans Higher Friday

Corn closed Friday with gains of about 3 cents a bushel. December new crop gained 3 cents on the week. Later in the week traders were watching the weather forecast which was calling for warmer and dryer weather until the middle of the month. Shallow rooted crops from too much rain in the Eastern Corn Belt were already showing moisture stress. I thought it was rather interesting that a couple market advisory services were telling farmers to but calls against earlier sales for new crop. They were concerned about corn prices rallying because of all the flooding rains earlier in the season and now the warm and dry forecast.

Beans had a very good day closing 18 to 23 cents higher. November new crop closed 23 cents higher. I read on Pro Farmer that the funds bought 9000 contracts Friday or 45 million bushel. On the charts we had a reversal higher with open interest increasing. That means new longs were coming into the bean market. Beans rallied on the same factors as corn. The only difference is that traders know that the corn crop is made in July and the beans in August. That means that warm and dry weather will have more of an impact on bean yields.