Tough Week For Corn and Beans
I am quite certain I cannot say what I really think about the corn and soybean markets without getting in trouble! Lets just say frustrating and leave it at that. I guess you could say the "Black Swan" hit the markets. A "Black Swan" is when an unexpected event moves the markets sharply lower. For 3 weeks in a row corn was working higher. Then Thursday it looked like corn was set to break out through overhead resistance in the March at $3.92. We get up Friday morning and hear about the military strike in Iran taking out a terrorist leader and down we go.
The military strike in Iran had the same impact in beans. Beans had been working higher too. With the "risk off " mentality beans lost 13 to 14 cents a bushel Friday. Trying to find something positive when I got here this morning corn was up a fraction and beans were only down around 2 cents. There was confirmation again this morning from China that the phase one deal will be signed in Washington on January 15. That should be supportive.
We must keep in mind that one of the biggest USDA Reports will be released Friday morning at 11:00. It is expected to be bearish. Then we still have the unknown of what will happen in the Middle East and what Iran will do. It could be a volatile time ahead!