Weekly Market Wrap-Up
Grain Market Commentary
Friday, January 12, 2018
by David Gleason, Associate Merchandiser
Final production numbers were out today from the USDA and were in line with expectations. Corn was down a couple cents after the report and beans closed up about 10 cents. Oil continues to rally on inflationary concerns and some are wondering if that mentality will spill over into grains. The dollar continues to break down.
Dec corn opened the week at $3.83 ¾ and closed the week at $3.80 ½. Corn continues to respect the 50 day moving average. We also see December corn hold the $3.80 mark relatively well. As these 2 points continue to converge it will be interesting to see which direction the market picks. It’s hard to expect a major move in the market to the upside with the looming stocks on farm that are waiting to be sold on any bounce in the market.
Nov beans opened the week at $9.84 ½ and closed the week at $9.83 ½. Beans broke into the report but recovered most of the losses to close the week out as we saw a production cut on the report. That production cut was met with a large export cut which raised the carryout for this year. If beans can continue the rally into next week it would be a good time to consider adding sales as Brazil and Argentina continue to grow.