Grain and livestock futures are mixed early Thursday.
Mark Knight, Farmer’s Keeper Financial, says soybeans initally saw follow through buying after a nice reversal yesterday and with strong weekly exports of nearly 75 million bushels.
He says soybeans were able to to shake off tariff concerns after the election with ideas it Trump may hold China’s feet to the fire on trade and China may front load more export business.
Corn was pulled down early by wheat despite a strong close above resistance yesterday, exceptional weekly exports of 109 million and a flash sale of 4.7 mb to unknown.
Total commitments stand at 1.125 billion bushels, up 48% from a year ago and Knight thinks the U.S. will continue to see strong export sales with prices at value levels.
Here too he sees front loading on corn exports from Mexico and Japan before Trump takes office but some of that is already priced in.
Wheat futures are seeing pressure from rains that have fallen in Hard Red Winter wheat areas and more in the forecast.
Weekly exports came in at 13.8 million bushels and total commitments are now at 510 million bushels, which is up 18% from last year.
Markets are also positioning ahead of the Fed decision with an anticipated .25 point cut but what the FOMC signals for the rest of 2024 could be the key.
Grains are also squaring ahead of the WASDE on Friday although Knight isn’t expecting much change in the balance sheets for any of the grains.
