Tough Week for Corn and Beans
Corn prices were quite active last week with big ranges. By the close Friday corn lost about 12 cents a bushel. The cloud hanging over corn prices was President Trump's threat of putting a 5 percent tariff on any products from Mexico imported into the U.S. The tariffs would increase by 5 percent a week up to 25 percent unless Mexico stopped the caravans of people from Central American Countries moving through Mexico to the southern U.S. boarder. Mexico is out largest export market for corn. It was announced Saturday we have a deal and there would be no tariffs. But still corn is down 4 cents in the overnight session!
It was a tough week for bean prices too as beans lost about 21 cents a bushel. The forecast rains for later on last week were not as heavy as anticipated in the northern Midwest so traders assumed a lot of beans would get planted. Plus, many traders assume that some of the intended corn acres that did not get planted will get switched to beans. The Commitment of Traders Report showed that as of last Tuesday the funds were still short 93,356 contracts. The Crop Progress Report this afternoon after the close will be a market mover!