Weekly Market Wrap-Up
Grain Market Commentary
Friday, December 1, 2017
by David Gleason, Associate Merchandiser
Grains had a nice finish to the week. We started out the week on a down note before the funds decided to cover some of their short. Oil had a very similar week to grains as money reentered to close the week out. The dollar is chopping around as we await the Senate vote on the latest tax plan. Mitch McConnell said that republicans do have the votes to pass the bill today.
March corn opened the week at $3.54 ¾ and closed the week out at $3.58 ¾. Funds started covering their short on Wednesday as we see a lack of producer selling. There is plenty of end user pricing that needs to be done going forward as cash movement has been low. Prices are simply not attractive to producers at these levels.
January soybeans opened the week at $9.93 ¾ and closed the week at $9.94 ¼. Beans bounced nicely off the 50 day moving average this week as the funds defend their long position in beans. Beans feel like a good opportunity for sales right now. South American weather is shaping up nicely and looks to be providing another stellar crop. A couple of private funds have come out with acreage projections for next year and are estimating at least 90 million acres of beans. This would raise the carryout even higher for next year if those projections are close.