Weekly Market Wrap-Up
Grain Market Commentary
Friday, May 19, 2017
by David Gleason, Associate Merchandiser
Grains had a mixed week. We saw the Brazilian president reportedly involved in a scandal, in which he gave his blessing to a JBS executive to bribe a senior official in the Brazilian government. The Brazilian Real traded sharply lower Thursday morning as a result. Oil was trending higher on the week on a report out of the Middle East that the Saudis and Russians had agreed on production cuts. The dollar was lower, as many continue to doubt whether the president will be able to push through his pro-growth agenda. The markets have been moving fairly quickly here as of late and it’s a good time to remind producers to have working orders in to price grain.
December corn opened the week at $3.88 ¼ and closed the week out at $3.90 ¼. Corn had a good week compared to beans. We saw December corn hold its own and actually trade higher on the week. Crop conditions are not ideal this early in the season and many are still wondering how many acres we truly planted. Once the June report comes out we’ll have a better idea of what’s in the ground. July corn will be interesting to watch next week as we have tried a couple times to break out above the 100 day moving average and failed. Another failure at the 100 day moving average would indicate a retest of the recent lows.
November beans opened the week at $9.59 ¾ and closed the week at $9.51 ¾. Beans traded lower on the Real movement. Brazil reportedly moved a record amount of beans, 2.5 MMT, on Thursday. Beans did bounce of recent lows to close the week and finished up 7 on Friday. November beans have traded in a tight range over the last couple months, trading as low as $9.40 and as high as $9.80. If this market allows us to climb back up toward $9.80 it will be a good idea to look at extending coverage for new crop.