Minnesota Broker Bean Complex Had a Great Week [Listen]
Commodity Broker Gordy Kralovetz with Chiodo Commodities said the entire bean complex, oil, meal and beans had a great week. March beans gained 86 cents a bushel and was led by soybean meal and oil. Palm oil set record highs a number of times last week which will increase the demand worldwide for soybean oil. Bad weather in Argentina has decreased their bean crop. Remember they are the largest exporter of soybean meal onto the world market! Then there are the weather issues in Brazil with too wet in the North and dry in the South!
Corn was weak closing down around 14 cents. It seemed like the funds were spreading last week, buying beans and selling corn even though they are long corn by a huge number of contracts. Brazil's first crop corn is small and they pretty much use it internally. It is their second crop of corn that is large and exported onto the world market. That is just 10 percent planted right now so there is a long planting and growing season ahead!
You would think that if the current weather pattern in Brazil has decreased the soybean crop, the "market" would be more concerned about it continuing and hurting the second crop of corn? However, you could argue it has not been hurt yet. Maybe the funds are buying the known (bean crop was decreased) and selling the unknown (how much the corn crop will be hurt.) Click on the link and listen to Gordy discuss the ag markets last week!