Corn and wheat see pressure early Thursday, with soybeans and products higher. Cattle are higher with hogs lower.
Corn and wheat see early pressure Thursday despite the announcement of a trade deal with the UK supporting outside markets and decent export news.
Darin Newsom, Senior Market Analyst for Barchart, is skeptical the deal will make a huge impact on agriculture and compares it to the Phase One deal with China that was not fulfilled.
He says old crop corn made new lows for the move again Thursday and continues to come under pressure as the focus shifts to the larger supplies ahead and comfortable available stocks to use, meaning commercials and end users don’t need to bid up for product.
Weekly exports were solid at 65.5 million bu. and total commitments are now running 27% of last year. Plus, there were flash sales of 8.1 million bu. of corn to Mexico and 4.5 million bu. new crop sales to unknown.
Wheat continues to be an anchor on corn as well with improving weather conditions and more wheat going into the feed ration.
Soybeans are rallying early with strong product export sales Thursday morning.
Cattle futures continue to hold gains with higher cash trade Wednesday.
Southern deals ranged from $218 to $221 with Northern business dressed at $353 to $360.
The FOMC meeting concluded with no change in interest rates, as expected.
However, FOMC Chair Jerome Powell again mentioned the heightened uncertainty in the market with possible tariffs.
He says that could create stagflation with higher inflation in the midst of recession.
Newsom says that could decrease demand for goods and services which would be ultimately negative for agriculture.
