Corn traded within a 10-cent range this previous week, ending 1 cent lower than last week. The Dec futures low at $3.44 continues to hold as the bottom for the year so far. If this holds for another week or two, there is a chance this will be the year’s low.
Early yield reports indicate yields are as expected or better than what farmers were thinking a month ago. Prices of $4 will be difficult on the Dec or Mar futures if this yield trend continues. I’m looking for corn to be range-bound between $3.45 to $3.75 through Christmas.
Despite harvest getting into full swing this previous week, soybeans increased another 16 cents. Basis levels continue to widen to last year’s harvest levels. Spreads between contract months are still wide, indicating plenty of supply and encouraging storage. This type of market action doesn’t make sense from a fundamental point of view and could be an indication that beans might be looking at a seasonal top.… Continue reading