Weekly Market Wrap-Up
Grain Market Commentary
Friday, March 9, 2018
by David Gleason, Associate Merchandiser
Friday was a washout for grains, but on the week beans and corn finished relatively even. Oil has been cooling off here over the last couple weeks with US shale proving to be fairly competitive. The dollar has chopped around and finishes higher to close the week out. Yesterday we had the latest WASDE out which provided some surprises to spur the market.
Corn opened the week at $4.03 ¾ and closed the week at $4.07 ¼. The latest WASDE provided some buying interest in corn as finished up 6 cents yesterday breaking through $4.05. The USDA took exports up 175 million bushels and raised ethanol demand by 50 million bushels. This took the carryout from 2.352 billion bushels to 2.127 billion bushels. Corn is still showing a little overbought on the technical indicators, but the market will likely buy the dip if South America continues to deteriorate.
November beans opened the week at $10.37 ¼ and closed the week at $10.30. The latest WASDE raised crush by 10 million bushels and cut exports by 35 million bushels. The net effect took the carryout from 530 million bushels to 555 million bushels. This would be the 2nd largest carryout on record. This news sent beans spiraling down on Friday. Soymeal is also heading lower which started to pull the bean market up to start with. Beans still have plenty of room for a correction, but things can change quickly. Have orders ready and waiting at levels that make sense for you.