Weekly Market Wrap-Up
Grain Market Commentary
Friday, September 8, 2017
by David Gleason, Associate Merchandiser
Grains bounced around this week as funds look to square up positions before the WASDE report next week. Oil is trading back and forth between the 100 and 200 day moving average, but did see a bearish signal when the 100 day moving average traded through the 50 day moving average. The dollar broke out to the downside here this week amid a lack of positive news alongside a lack of clear plan going forward from our administration. This will help boost our exports going forward.
December corn opened the week at $3.54 ¾ and closed the week out at $3.56 ¾. Dec corn attempted to take out $3.60 this week and struggled. Corn demand is struggling as the export market looks to be down year over year. We may see some of that demand come back as the dollar washes out, but the carryout will still be ample. Brazil has plenty of old crop corn to compete with us as well.
November beans opened the week at $9.53 ¾ and closed the week out at $9.62. Next week will provide more insight into the bean yield as the USDA will come out with an updated estimate and should provide more direction in the coming months. If the 49.4-bushel yield is either confirmed or we see an increase, then beans will have some downside. Beans are managing to stay above the 100 day moving average but are seeing resistance up near $9.80.