Weekly Market Wrap-Up
Grain Market Commentary
Friday, June 16, 2017
by David Gleason, Associate Merchandiser
Grains had mixed week as the market turns to trading weather here for the next couple months. Oil was lower on the week as we search for a near term low. The fed hiked interest rates earlier this week. The dollar had a fairly mixed reaction as many debate the economic impact of hiking rates. The fed wants to get more bullets back for any potential pullback in the future.
December corn opened the week at $4.04 and closed the week out at $4.02. The market traded down to start the day on Thursday on rains that moved across the country, but the midday weather model pulled rain out of the extended forecast and projected hot temperatures across the corn belt. The same forecast was reiterated here on Friday leading to a higher close to finish the week out. We still have ample ending stocks for this year, but any hiccups in the new crop could potentially create a tighter new crop carryout situation. We need to keep in mind that ending stocks for next year are still projected to come in above 2 billion bushels at current acres and trend line yield, which means we should look to reward this rally if we continue to reach toward new highs.
November beans opened the week at $9.49 and closed the week at $9.50. Beans have struggled to get any traction going as the world feels flush with beans, and we will not get a good look into what August weather will be for a while. Nov beans are resting just below the 50 day moving average which if we can get out and above that it would indicate a retest of recent highs at $9.80. The June 30th report will also have good insight into the direction of beans in the near term.