Markets
Today’s commodity market news. Featuring expert analysis from Michelle Rook, Jerry Gulke and Pro Farmer Editors.
Scott Varilek, Kooima Koomia Varilek, says cattle try to recover after a lower day Thursday following lower cash and cutouts. Grains are also trying to recover with some corrective buying.
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”.
Ontario Premier Doug Ford has called for Canada to negotiate a bilateral trade agreement with the U.S. unless Mexico aligns with North American partners on tariffs for Chinese imports.
DuWayne Bosse of Bolt Marketing says pressure in grains is coming from a higher dollar, lower crude oil, Trump’s political appointments and weather.
While some atmospheric factors have displayed La Niña-like signals, ENSO-neutral conditions persist, according to the Australian Bureau of Meteorology.
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.
Jerry Gulke, president of the Gulke Group, says the election might have brought about a paradigm shift in the approach to agricultural policies.
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.
We recap this week’s price action and provide outlook for the next 5, 30 and 90 day segments.
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.
USDA’s 10-year baseline projections are based on data as of October and assume no policy changes. USDA’s initial assumptions for 2025-26...
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.
Chinese President Xi Jinping would much prefer to avoid a tariff battle that risks proving much more devastating than the first round.
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.
U.S. agricultural exports totaled $13.13 billion in September against imports of $17.39 billion, resulting in a monthly trade deficit of $4.26 billion.
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.
The Federal Reserve is expected to cut rates, though Malanga signals future economic stability may be threatened by conflicting survey data, recent steepening of the yield curve, and a federal deficit near 7% of GDP.
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.
We recap this week’s price action and provide outlook for the next 5, 30 and 90 day segments.