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Summing Up a Head-Scratcher of a Grain Marketing Week
Traders end the week the same way they started it, by scratching their heads. Confusion reigned over the WASDE Report that estimated less of an increase in this year's U.S. corn yield than expected, and Friday the Farm Service Agency released preliminary U.S. acreage numbers below what the trade expected.
In both cases this week, the corn market has escaped the negativity from the reports that the soybean market has had to digest. In fact, marketwatchers are now seeing the charts show signs that the corn market is well positioned for a late summer rally.
Meanwhile, the macrofactors have reared their ugly heads. The Ukraine/Russia conflict looked like it was fading to start the week, only to fire up on Friday with Ukraine planning to attack a Russian aid convoy.
Overall, the Midwest weather continues to favor big crops, keeping long-term pressure on grain prices. The hopes for that late-summer rally to catch fire rely on demand and the willingness of the bulls to keep buying. The demand help held up its end of the deal this week. But the bulls seem to come and go.