Market Analysis
Randy Martinson, Martinson Ag, says the risk off commodity wide selling was tied to new highs for the year in the dollar index and renewed fears about tariffs and a trade war.
Vince Boddicker, Farmers Trading Company, says grain markets are trading lower for a 4th day as technical and risk off selling accelerates and a higher dollar adds pressure.
Shawn Hackett of Hackett Financial Advisors says the weakness in grains is coinciding with the strength in the dollar in what he calls the “Trump Effect”.
DuWayne Bosse of Bolt Marketing says pressure in grains is coming from a higher dollar, lower crude oil, Trump’s political appointments and weather.
Chuck Shelby, Risk Management Commodities, says grains saw profit taking and technical selling across the complex and also reacted to the strength in the dollar.
Kent Beadle with Paradigm Futures says corn and soybeans are seeing technical selling after failing at chart resistance again on Monday.
Allison Thompson with The Money Farm says pressure in the grains came from a lack of news or fresh demand, farmer selling and bearish outside markets like lower crude oil and a higher dollar.
Brad Kooima of Kooima Kooima Varilek says cattle are consolidating and the live cattle charts look horrible after Friday’s poor technical action. Soybeans try to extend gains after a higher day Friday and USDA’s 1.4 bushel per acre yield cut.
Alan Brugler, A and N Economics says to keep corn and soybean prices moving higher the U.S. will need to see continued demand through the end of the year, which may be difficult with the fear of tariffs.
USDA provides a bullish surprise on corn and soybean yields and ending stocks but little change on wheat. Jim McCormick, AgMarket.Net breaks down the report.
Scott Varilek with Kooima Kooima Varilek says grains are mixed ahead of the WASDE and despite more flash export sales. Cattle futures are under pressure with Choice boxes down over $6 and light cash at $188, also down from last week.
Chip Nellinger, Blue Reef Agri-Marketing, says soybeans ended with nearly 23 cent gains in the January contract on the heels of new highs for the move in the soybean oil market, spread unwinding with corn and solid weekly exports.
Mark Knight with Farmer’s Keeper Financial says grains open mixed digesting strong weekly exports and positioning ahead of the FOMC announcement and WASDE.
Darren Frye, Water Street Solutions, says it was an impressive that grains, especially the soybean complex, shook off the election results, possible tariff hikes and a sharply higher dollar.
Kevin Duling with KD Investors says grains started off lower with soybeans seeing double digit gains on the possibility of increased tariffs and a trade war with China, then bounced off the lows.
Jeff Hoogendoorn with Professional Ag Marketing says the grain markets were supported by strong demand and the lower dollar but also positioning ahead of the election, FOMC decision and WASDE.
Randy Martinson with Martinson Ag says grains and livestock markets are positioning ahead of the election, FOMC announcement and the WASDE on Friday.
Mark Schultz with Northstar Commodity says strong demand continues to support corn and soybeans but it hasn’t been enough to push prices above chart resistance.
Joe Kooima of Kooima Kooima Varilek says grains are seeing support from strong demand and more export business. Cattle consolidate with election uncertainty, while hogs rebound from early weakness in all but the December contract to make new highs.
Jerry Gulke, president of the Gulke Group, says as harvest wraps up it is a good time to review the year’s markets.
Scott Varilek with Kooima Kooima Varilek says corn and soybeans were supported by strong demand initially but ended off highs running into chart resistance and on election jitters. After another volatile day in cattle is the market topping?
Darin Newsom, Sr. Market Analyst with Barchart says some of the early support in the grain markets Friday morning is coming from strong export demand.
Joe Santos, Director of the Ness School of Management and Economics at SDSU, says, “Interest rates if they remain relatively high compared to history I think that will continue to tighten economic performance in general including agricultural performance.”
Mike Minor with Professional Ag Marketing says soybeans saw a nice short covering bounce on the heels of a rally in soybean oil and more flash export sales to China and unknown.
Mike Zuzulo, Global Commodity Analytics, says wheat led gains putting in risk premium on the low crop rating which triggers some short covering and corn followed.
Grain futures are seeing corrective buying, bouncing off technical support says Kent Beadle with Paradigm Futures.
Arlan Suderman with StoneX says grains saw technical and risk off selling from sharply lower crude oil. However, improved rains in South America were also a factor.
Cattle are trading two-sided early as Brad Kooima of Kooima Kooima Varilek says the market is digesting the USDA Cattle on Feed Report. Grains are seeing pressure from a number of bearish factors.
Jerry Gulke, president of the Gulke Group, says price performance might have been a little disappointing but that’s because of USDA’s lofty ending stocks estimates at nearly 2 billion bushels for corn and 550 million bushels for soybeans.
Bryan Doherty, Total Farm Marketing, says grains saw profit taking on Friday after hitting chart resistance and a pick up in farmer selling.