Markets
Today’s commodity market news. Featuring expert analysis from Michelle Rook, Jerry Gulke and Pro Farmer Editors.
Rising household incomes, increasing production and favorable trade policies have led to major growth in U.S. agricultural exports in the past several decades.
Traders were expecting bullish numbers from Tuesday’s World Agricultural Supply and Demand Estimates (WASDE), but the projections were even friendlier than anticipated.
Corn Production Down 1 Percent from October Forecast Soybean Production Down 2 Percent Cotton Production Up less than 1 Percent
After the drubbing last week, markets recovered sharply off retracements, especially soybeans and corn, which held their upward trendline, in place since August.
President-elect Joe Biden has pledged to work more closely with U.S. allies in confronting China on trade, and is seen as unlikely to roll back his predecessor’s tariffs.
The price spikes this fall have been a surprise for many. During a period where farmers usually experience lower prices, commodity markets started trending higher in August and have accelerated since.
Cash cattle and futures traded lower for cattle most of the week, while grain markets experienced a harvest rally.
Crop Consultant Dr. Michael Cordonnier cut his corn yield forecast . . .
The Brazilian government believes it is possible to increase grain plantings 5% per year for several years without deforestation, Agriculture Minister Carlos Favaro told Reuters.
Corn futures rose for the fifth straight day and settled at the highest levels in over seven months on strengthening export demand.
Corn futures settled near a two-week low on profit-taking and technical selling in the wake of the early-week rally to nine-month highs.
May corn futures plunged 34 1/2 cents to $6.55 3/4, the lowest closing price since Feb. 18 but still up 3 cents for the week. December futures fell 25 cents to $5.79 3/4.
