Grain and livestock futures are mixed early Wednesday.
Chuck Shelby, Risk Management Commodities, says wheat is consolidating and pulling down corn.
However, corn is also suffering from lower crude oil and disappointment over Treasury’s GREET model guidance for corn ethanol to qualify for Sustainable Aviation Fuel tax credits.
Meanwhile, soybeans are seeing a bounce with bean oil despite more deliveries and a disappointing GREET announcement for the soybean industry. Shelby says yesterday’s pressure in soybeans was partially end of month positioning by funds but also came on farmer selling or rolling. So today he expects pressure to ease.
Soybean meal is seeing weakness after the strike in Argentina was called off.
Shelby is also an Indiana farmer and says he had 5% of his corn and 15% of his soybeans planted before the rain event hit. He’s hoping to get back in the fields this week but says the extended forecast is looking wet.
When will the grain markets start to trade weather and planting delays? And is this setting up to be like the 2019 planting season?
Shelby says if rains continue to keep farmers out of the field in the next two weeks by mid-May the market could see a rally on planting delays, but it’s a little too early yet.
Plus, a look at how cattle continue to chase H5N1 headlines and how that might be benefitting the hog market.
