Grains mixed to close out the week
Corn fell out of bed Friday, closing lower while soybeans and wheat ended the day higher.
March corn ended Friday 8 1/4 cents lower at $5.86 1/2 per bushel, while January soybeans were 7 3/4 cents higher at $11.35 3/4 and March wheat was 10 1/4 higher at $6.12 1/4.
Corn ended lower mostly because of poor export demand. And, that's not just today: traders are "having a tough time making a bullish case for corn" with an outlook that includes no sign exports will pick up, according to a Dow Jones Newswires report.
Despite Friday's dip in the corn pit, outside factors remain just on the bullish side, and longer-term losses will be trimmed or offset by global supply, which remains "near historic lows" in the face of growing demand in the long term, according to one report.
Meanwhile at the farm level, basis levels continue to tighten, with the corn basis nearing 40 cents/bushel above the cash price in some areas, one analyst says. And, it's a good thing, too; farmers say the current corn prices are far from what's needed to encourage more corn production in 2012.
"These prices won't buy 95 million acres," says Agriculture.com Marketing Talk veteran contributor Mike M2692830. "We didn't need 95 million acres a year ago and we didn't get a 160 yield as we were told we would last March."