Market Analysis
Joe Kooima of Kooima Kooima Varilek says cattle and hogs are struggling Thursday with the set back in the equity markets.
Dave Chatterton with Strategic Farm Marketing says the ongoing Iran war and higher crude oil prices helped drive speculative buying interest in grains.
Brady Huck from Empower Ag Trading says, “After the volatility that we’ve seen over the last couple of weeks, sometimes these markets just need to find some stability.
Randy Martinson with Martinson Ag says the limit down day in old crop soybeans was tied to the fear that the meeting between President Trump and President Xi scheduled for China at the end of the month will be delayed due to the war.
Wheat was the price leader on Friday mostly on technical buying according to DuWayne Bosse with Bolt Marketing.
Cattle futures are higher early Friday in tandem with the bounce in the equity markets and the pull back in crude oil and the energy markets according Scott Varilek of Kooima Kooima Varilek.
Soybeans made new highs for the move during the session. Mark Schultz with Northstar Commodity says it was partly due to the rally in crude oil and soybean oil. However, there were also some other factors that boosted prices.
Grain markets are continuing to rally on Thursday morning. Greg McBride with Allendale says they following the energy markets and trading headlines.
Grains ended higher on Wednesday with technical buying returning as traders attempted to add risk or war premium to the market says Don Roose of U.S. Commodities.
Grains were back sharply higher on Wednesday following crude oil and adding war premium according to Darin Newsom, senior market analyst with Barchart.
Rich Nelson with Allendale says with a quiet WASDE, the corn and wheat markets were again caught in the money flow from the energy sector.
Grains futures all made new highs for the move in the overnight session but could not hold on to gains during the day says Garrett Toay of AgTrader Talk with a pick up in farmer selling.
Cattle futures are sharply lower on Monday with feeder cattle touching limit down at one point on economic uncertainty according to Brad Kooima of Kooima Kooima Varilek.
Grains markets all hit fresh highs for the move on Friday as funds piled into buy in the complex. Chip Nellinger with Blue Reef Agri-Marketing says they were adding risk premium.
Scott Varilek with Kooima Kooima Varilek says the uncertainty of the war in Iran has caused some reallocation of money this week.
Allison Thompson with the Money Farm says the rally in crude oil is causing the money to flow into he grains as a hedge against inflation.
Grain markets eased on Wednesday in tandem with the cooling energy markets, including crude oil says Alan Brugler of A&N Economics.
Grain markets were lower on Wednesday morning as Rich Nelson of Allendale says they are seeing spillover from easing energy markets.
Ted Seifred of Zaner Ag Hedge says while the rally in the energy markets is bullish for grains, the higher dollar and possible demand destruction from the Iran war are bearish. The market is trying to determine which will win out.
Kevin Duling with KD Investors says if crude oil continues to climb the funds may buy grains as a hedge against inflation and there has been some of that showing up already.
Chuck Shelby with Risk Management Commodities says the uncertainty in the grain markets caused some risk off selling by traders but futures ended off session lows.
Naomi Blohm with Total Farm Marketing says the higher monthly closes for all the grains were bullish and there are several factors that need to come together for it to continue.
.Matt Bennett with AgMarket.Net says there’s a report from China that says the talks by trade officials prior to the summit in China is not going well.
Arlan Suderman with StoneX says the soybean market is still pricing in optimism about China and biofuels.
Soybeans recovered on Tuesday on market talk that China was looking to buy soybeans off the Pacific Northwest says Jim McCormick with AgMarket.Net.
Grain and cattle futures ended mostly lower on Monday caught up in money flow and the selloff in the stock market tied to tariff concerns says Mike Minor with Professional Ag Marketing.
Brad Kooima with Kooima Kooima Varilek says the USDA Cattle on Feed report was providing some support. The on feed number came in at 98% of a year ago, placements were at 95% which was below trade estimates and marketings were at 87%.
Shawn Hackett with Hackett Financial Advisors says the market fears that China will use the ruling as leverage to get out of its trade framework struck with the U.S. on Oct. 30 and that could include its soybean purchase commitments.
Scott Varilek with Kooima Kooima Varilek says the cattle market is also awaiting cash direction.
Brad Kooima of Kooima Kooima Varilek says cattle futures are getting overbought and ran into another layer of chart resistance Wednesday but higher cash could push the market to new highs.