Markets
Today’s commodity market news. Featuring expert analysis from Michelle Rook, Jerry Gulke and Pro Farmer Editors.
Mike Zuzulo, Global Commodity Analytics, says corn and wheat saw some profit taking after a nice rally, while soybeans powered back on export business and South American weather.
The House is preparing to vote next week on legislation aimed at restricting foreign ownership of U.S. agricultural land, particularly targeting purchases by entities connected to China.
The SAF Coalition has formed, representing nearly 40 major airlines, airports, manufacturers and biofuel producers, lobbying Congress to provide a larger and longer-lasting tax incentive for sustainable aviation fuel (SAF).
Mike Zuzulo, Global Commodity Analytics, says grains are seeing near term support from global weather concerns and improving demand. Livestock end in the red with a poor technical close in cattle on lower cash.
Scott Varilek, Kooima Kooima Varilek, says cattle are reacting to early cash which was lower but he says he is still looking for steady money. Grains take a breather, but he thinks that rally will continue with better demand and South American concerns.
Low water conditions have led to several barges running aground along a key stretch of the lower Mississippi River, the U.S. Coast Guard told Reuters.
Rich Nelson with Allendale says supply and demand factors are combining to push the market higher and he isn’t sure the rally is over yet.
Rich Nelson with Allendale, Inc. says grains are pricing in ideas that corn and soybean yields are not as big as feared. That’s what they found in their nationwide annual yield survey. However, South America’s crop size may also be declining. So what will that mean for the September WASDE and can grain prices continue to rally as a result?
A push by India to make more corn-based ethanol has turned Asia’s top corn exporter into a net importer for the first time in decades, squeezing local poultry producers and scrambling global supply chains.
Dave Chatterton, Strategic Farm Marketing, says grain are higher early Wednesday. The market has been pushed by fund short covering, lower yield ideas and better demand. However, upside may be limited especially as farmers sell on the rally. Livestock are mixed.
Randy Martinson, Martinson Ag, says he was encouraged grains were all able to close higher and build on last week’s higher weekly closes. So was it all fund short covering?
This acquisition, announced in December 2023, gives KAES full ownership of the state-of-the-art facility, which has the capacity to produce 3.5 MMT of nitrogen fertilizers and diesel exhaust fluid annually.
Randy Martinson with Martinson Ag says grains saw fund short covering and profit taking building on higher weekly closes. There was also some money flowing into the grains with the stock market melt down. However, buying also stemmed from weather and ideas of lower yield and crop conditions in corn and soybeans.
Bryan Doherty, Total Farm Marketing, shares what he’s looking for this week in the markets to prove last week’s higher closes in the grains wasn’t just a head fake or a bear trap.
Bryan Doherty, Total Farm Marketing, says while the technical action in the grain markets was encouraging grains need to close higher again next week for confirmation. Cattle and hogs also closed higher Friday and for the week.
Scott Varilek with Kooima Kooima Varilek says long term continuation charts for live cattle still look positive. Corn and soybeans could post higher weekly closes but he thinks it might be a bear trap.
Corn and soybeans rally Thursday putting in some weather premium but may have reached a value level which is uncovering strong end user demand.
Jeff Hoogendoorn, Professional Ag Marketing, says corn and soybean may have dialed in the biggest yield and with hot dry weather trimming yield and demand picking up the markets could see more buying.
Cattle set back on lower early cash and cutouts, while hogs turn mixed after early gains tied to strong weekly exports.
Tommy Grisafi, Advance Trading, says rain in the Corn Belt stopped a three day rally in soybeans, while corn failed even after a key reversal on Tuesday.
Tommy Grisafi, Advance Trading, says soybeans and corn fade flash export sales, also see First Notice Day liquidation. While wheat may be bottoming as quality issues develop in Hard Red Spring wheat.
Wheat sees short covering Wednesday and tries to rally with corn after key reversals Tuesday in both markets. Soybeans take a break on Midwest rains. However, Craig Turner with StoneX thinks long term lows are close.
Corn and wheat score key reversals after making new contract lows, while soybeans continued higher for a third day.
Soybeans close higher for a third session still putting in weather premium. Cattle and hogs also saw strength with end of month and quarter positioning.
Corn sees short covering as well with lower crop ratings by 2% and Mexico buying around 5 million bushels of new crop U.S. corn.
Soybeans and products were all higher on Monday, while corn continued to see technical selling and long liquidation ahead of first notice day on Friday.
Cattle shook off a bearish a Cattle on Feed placements number, while hogs consolidated. John Payne with Advance Trading, discusses where the markets head next.
Cattle getting some help from ideas the cash market may be close to a bottom. Grains continue to digest Pro Farmer Crop Tour results and weather.
Pro Farmer confirms record soybean crop and bumper corn crop. What does that mean for the harvest and post-harvest outlook for the market?
Pro Farmer Lowers Corn Yield and Production From USDA’s August Estimate, But Raises Soybean Yield and Production to Record Levels.