Weekly Market Wrap-Up
Grain Market Commentary
Saturday, October 7, 2017
by David Gleason, Associate Merchandiser
Harvest is off to a mixed start as the eastern grain belt continues to progress nicely, but the western grain belt is still fighting off spotty rains. Oil sold off starting last week and continued into this week. We saw the dollar rally here off recent support. Next week we’ll get to see the latest WASDE report. We expect a fairly muted trade after the report as the corn yield isn’t likely to provide any significant changes. Beans could provide a little excitement if we see a yield change next week.
Dec corn opened the week at $3.54 ¾ and closed the week out at $3.50. Corn is in a tight range right now as the trade waits on more confirmation of the final yield. Recent lows in Dec corn sit right around $3.45 and on the top side corn has struggled to trade up near $3.60. Dec 18 did provide some producers the opportunity to get some hedges on above $4.00 at the beginning of last week and into this week.
Nov beans opened the week at $9.67 ½ and closed the week out at $9.72 ¼. China comes back from holiday next week and the trade is interested to see if they get more serious about putting on more of an export book. China’s demand has felt fairly insatiable for beans, but yields continue to impress placing a solid lid on prices. Any slip up in South American yields could lead to some excitement for beans going forward. Look toward Nov 18 if we get any rally and start selling some new crop beans to get ahead for next year.