Corn closed the week up 9¢ and soybeans surged higher at week end, closing up 55¢. Wheat continued to languish, losing 18¢ compared with last week, although prices over $7 for Chicago wheat are by no means shabby given available supplies.
Soybeans’ strong performance was attributed to a combination of dollar weakness, spread unwinding with corn, Chinese demand and dry conditions in key South American bean producing regions gave bulls confidence to pump more money into the long side of the market, according to Pro Farmer. Buying triggered technical buy stops, which triggered more buying.
In addition to the weak dollar and general interest in commodities, corn support was related to very wet conditions in parts of the Corn Belt. Heaviest rains this week were in southern Minnesota and in the western Great Lakes region, resulting in localized flooding but showers occurred through the central Midwest today.
Though it closed lower for the week, Friday’s market action for wheat was positive, as it followed soybeans and corn higher. The same factors were at play: a lower dollar and an inflationary mentality in a number of key commodity markets. Use caution as market attention turns to higher planted acreage here and in Europe. Gains are already being seen in planted area in the UK.