This information is provided by Archer Financial Services, Inc., 800-933-3996.
The corn and soybean markets continued their recoveries this week from the aggressive fund selling that was prevalent prior to last Friday’s Prospective Plantings and Acreage Report.
The corn market raced over $.60 higher in three trading sessions to score a high on Tuesday of $6.65 ¾. New crop corn values could not keep pace, but did manage a $.10 higher trade for the week and a close above $5.50 on Thursday. The soybean market also surged this week with May soybeans closing $.31 higher for the week and November soybeans falling just short of the coveted $14.00 mark on Tuesday. The wheat market lacks supportive news at this point and slipped over $.20 lower for the week.
Look for corn to continue to gain on wheat over the next several weeks. The focus of the market to start next week will be on Tuesday’s release of the USDA’s Monthly Supply and Demand Report, as well as the forecasted cold temperatures. While few weather sources or agronomists feel that there will be any significant damage with next week’s cold snap, the trade will be keenly watching the forecast for the next 10 days for signs of whether this cold pattern may continue.
The focus of the USDA Report next week will be on production estimates from the Southern Hemisphere. The expected production reductions should provide support for soybeans next week, but traders should be wary that a temporary top could be formed once the report has been factored into the market. November soybeans should trade above $14.00 next week.
The corn market has a rationing job to do and that will only become more clear with Tuesday’s updated carryout estimate. Look for May corn to test their recent highs near $6.75 next week as well with the potential to trade up to $7.00 over the next couple of months. Producers should be looking to advance new crop corn sales on a move in December corn above $5.60 next week.
(click the charts below to enlarge)