Weekly Market Wrap-Up
Grain Market Commentary
Friday, February 23, 2018
by David Gleason, Associate Merchandiser
Grain markets finished relatively unchanged on the week. The USDA had their annual 10 year outlook this week and was looking for 90 million acres to be planted for both corn and beans. The dollar is higher on the week. Oil is making a charge higher after finding support at the 100 day moving average.
Dec corn opened the week at $3.97 ¾ and closed the week at $3.97 ¼. The corn market for 2 weeks straight now has failed to trade above the 200 day moving average. Export sales have been strong the last couple weeks. If we can manage to trade above the 200 day moving average then we’ll take a run at $4.00, but will likely struggle to break out with a large chunk of producers waiting to sell that value.
Nov beans opened the week at $10.24 and closed the week out at $10.28. While beans have rallied in the past month old crop is running harder than new crop. This is shown in the SN/SX bean spread trading to a higher inverse. Beans are widely expected to have at least a 500 million bushel carryout and with 90 million or more acres coming this upcoming crop year the carryout will likely grow again. This is a good level to get additional sales on, and you can maintain upside by placing a min/max on some bushels. If the carryout grows into next year it’s hard to think that new crop beans will maintain futures levels with a $10 in front. July/Nov beans spread attached.