Markets
Today’s commodity market news. Featuring expert analysis from Michelle Rook, Jerry Gulke and Pro Farmer Editors.
Prices fell more than 30¢ for the week. “Many of us thought there would be a few less corn acres but it turned out to be more. Corn prices reacted quickly and violently due to the shock,” says Jerry Gulke.
Soybeans and Wheat Rally, Corn Ends Off Three Year Lows
From more corn acres than expected to a large increase in corn and soybeans currently being stored on farm, market watchers are still digesting USDA’s big June Acreage and Grain Stocks reports.
Soybeans and Wheat Prices Follow
What does it mean for the balance sheets and future prices?
Jerry Gulke shares three things to know about the state of corn, soybean and wheat prices.
Joe Kooima of Kooima Kooima Varilek says row crops have had a tough week making new lows — and Friday is off to a similar start.
DuWayne Bosse, Bolt Marketing, says the trade is leaning too bearish heading into the reports, but corn and soybeans have also experienced selling tied to improved weather and other factors.
DuWayne Bosse, Bolt Marketing, says the trade is leaning too bearish heading into the USDA reports, but corn and soybeans just can’t seem to put in a low.
Grains try to bounce after making near term lows Tuesday. Kent Beadle, Paradigm Futures, says markets are trading weather and positioning ahead of delivery and USDA reports.
Don Roose of U.S. Commodities says funds are selling in the grains markets due to bearish technical signals and lower seasonals, plus gearing up for bearish USDA Reports.
Grains see another bloodbath on Tuesday with new lows for the move scored across the complex. Don Roose of U.S. Commodities says funds are aggressively selling and are record short for this time of year.
Grains break to new lows on fund selling says Randy Martinson, Martinson Ag. He says the market is totally disregarding lower crop ratings and flooding in the Northwestern Corn Belt.
Shawn Hackett, Hackett Financial Advisors, says corn and beans took out the March lows and may have put in exhaustion lows. “It looks to me like the grain markets are washed out here,” he states.
Shawn Hackett, Hackett Financial Advisors, says soybeans rally with corrective buying following meal, but corn and wheat end mostly lower ahead of USDA Reports.
There are concerns about potential fraud in used cooking oil (UCO) trade as demand for feedstocks to produce biofuels in the U.S. increases.
Ag markets are mostly lower Monday except cattle and nearby soybeans. The record cash cattle trade is trumping the bearish Cattle on Feed Report, says Scott Varilek, Kooima Kooima Varilek.
Chuck Shelby, Risk Management Commodities, says every year weather can make the markets volatile, making it difficult for farmers to price their grain or do risk management.
Although a strike is not imminent, shippers are taking the threat seriously, with some diverting cargo to West Coast ports to avoid disruptions.
A recap of the week’s price action, with outlook for the next 5, 30 and 90 day segments.
Milk prices had a nearly $5 rally from the April lows but have since pulled back. Bryan Doherty, Total Farm Marketing, says cheese prices will dictate where prices head next and so far consumer demand has stalled.
The new CBO projections “prove what we have been saying all along: the House Republican farm bill is unpaid-for, relying on magic math and wishful thinking,” Senate Ag Chair Debbie Stabenow (D-Mich.) said.
Michigan’s ag department will provide the grant money for to up to 20 farms from its emergency response funds.
The Fed is expected to start lowering interest rates by the end of the year. Darin Newsom, Senior Market Analyst with Barchart, says this may keep fund money away from the grain markets.
Row crops recovered on Tuesday, while cattle posted another lower day. Brad Kooima, Kooima Varilek says all those markets saw corrective action.
Live cattle futures fall a second day in what Brad Kooima of Kooima Kooima Varilek calls routine profit taking. Row crops see a technical bounce with lower crop ratings.
The world’s renewable fuel makers will face a waste oil supply crunch, Bloomberg reports.
Bryan Doherty, Total Farm Marketing, says corn and soybeans try to bounce as they are technically oversold and with a 2% drop in crop ratings, wheat tries to follow but fails.
The Iowa Department of Agriculture reported another dairy herd infected with H5N1, making a total of six herds infected in the state.