Markets
Today’s commodity market news. Featuring expert analysis from Michelle Rook, Jerry Gulke and Pro Farmer Editors.
USDA will release its semi-annual Cattle inventory report for the U.S. after the close Monday, which may keep many traders sidelined. The report probably will reflect ongoing herd liquidation across the U.S. . .
Soybean price action recaps and 5-30-90 day outlooks.
Dry weather in South America, a brewing U.S. acreage battle and global unrest all took grain prices higher for the week.
Russia continues military preparations, de-escalation still possible
A group of Republican senators wrote to EPA Administrator Michael Regan to express concerns over the levels proposed for 2022 by the agency for the Renewable Fuel Standard (RFS) and the proposed rejection. . .
The macro elements affecting ag prices are as dynamic as I have ever seen them.
The European Commission increased its forecast for soft wheat, corn and . . .
Corn futures fell under corrective selling following yesterday’s close near a nine-month high, along with pressure from the U.S. dollar’s rally to 19-month highs, which also helped send wheat futures down sharply.
Russia/Ukraine diplomatic talks to continue
USDA will hold a general signup for the Conservation Reserve Program (CRP) Jan. 31-March 31 and a Grassland CRP signup April 4-May 13.
The U.S. registered a record trade deficit in goods of $101.0 billion in December, according to the U.S. Census Bureau.
Based on a Reuters story, IHS Markit expects U.S. farmers to plant less corn, soybean, spring wheat and cotton acres compared to its December forecasts.
Price action: Soybean futures led the soy complex higher, with nearby March bean futures surging 32 3/4 cents to $14.40, the highest in the contract’s lifetime.
The “free” storage being advertised by grain buyers can also be called price later opportunities, delayed pricing or DP.
Fed signals interest rate hikes starting ‘soon’
The International Monetary Fund (IMF) reduced Latin America and the Caribbean’s economic growth by 0.6 percentage points to 2.4%.
California Judge James P. Arguelles ruled Tuesday that enforcement of California’s proposition 12 will be delayed until 180 days after the final rules go into effect.
SRW wheat futures closed near a two-month high and HRW futures settled at the highest price in a month. . .
California judge delays prop 12 enforcement
Rising prices are hitting food supply chains and high fertilizer costs are weighing on farmers across the developing world, the Wall Street Journal reports.
It all comes down to what fundamental changes mean to the stocks-to-use ratios.
The Supreme Court could issue a new decision outlining the scope of Clean Water Act jurisdiction by this summer.
Payouts initially are coming in April or May via the Wildfire and Hurricane Indemnity Program-Plus (WHIP+) program.
March cotton futures fell 37 points to 120.38 cents per pound, the contract’s lowest closing price since Jan. 14
Canadian pigs headed to the U.S. to be fed and slaughtered are getting stuck in Canada, while feed is stranded in the U.S. as new vaccine rules exacerbate a labor shortage for truckers and railroad employees.
While some areas of South America received some recent rains, any crop improvement was likely limited as moisture will be lost to evaporation. . .
For the third week of January, the grain markets featured some explosive prices.
It might be prudent to understand various call option strategies that provide upside gain potential should the U.S. drought continue, soaring prices do indeed cause farmers to use less fertilizer or yields are low.
USDA’s attaché in Brazil lowered its estimate for the country’s soybean exports & production compared to the Jan. World Agricultural Supply and Demand Estimates (WASDE) . . .
March soybeans soared 34 1/2 cents to $14.25 3/4, the contract’s highest closing price since $14.33 on June 10. . .