Markets
Today’s commodity market news. Featuring expert analysis from Michelle Rook, Jerry Gulke and Pro Farmer Editors.
Corn and soybeans see double digit gains on short covering and talk of China biz says John Payne, Advance Trading, while wheat struggled. Cattle were hit by more bird flu news, hogs reversed off new lows.
Corn and soybeans see double digit gains on fund short covering after seven down days. John Payne, Advance Trading, says the markets were oversold and due for a correction.
Soyoil premiums in Argentina reached their highest point since July 2022, according to Fastmarkets.
The U.S. exported $14.44 billion of agricultural goods in April against imports of $18.30 billion, resulting in a deficit of $3.86 billion.
Cattle lower on more bird flu news but at least holding support. Scott Varilek, Kooima Kooima Varilek. Hogs make more new lows for the move and may contract lows. Grains see a short covering bounce.
Jeff Hoogendoorn, Professional Ag Marketing, says the cash and cutouts have been stagnant. So, the lean hog futures have continued to take all the premium out of the market to trade down to the index.
Grain and livestock end lower. Hogs make new lows for the move, pulling down cattle but funds are selling in livestock and back selling in grains. Jeff Hoogendoorn, Professional Ag Marketing, wraps up the day.
The union warned a strike could significantly disrupt the flow of goods, services and individuals entering and leaving Canada.
The recent Treasury Department decision to allow U.S.-made ethanol and other biofuels to qualify for a SAF tax credit under the IRA/Climate Bill has sparked a range of reactions from different stakeholders.
Corn and soybeans saw some early short covering as they are oversold but are getting drug down by wheat and fund selling says Kent Beadle, Paradigm Futures.
Soybean losses related to recent floods in Brazil’s southernmost state of Rio Grande do Sul were estimated at 2.71 MMT, state crop agency Emater said.
Vince Boddicker, Farmers Trading Company, says with corn rated at 75% good to excellent the market sees the crop getting off to a good start, so the mentality has changed to “rain makes grain.”
Grain and livestock futures ended mostly in the red on Tuesday. Vince Boddicker, Farmers Trading Company, says the mentality in grains as turned to “rain makes grain”, especially with the favorable crop ratings.
Sustainable aviation fuel (SAF) won’t be commonplace anytime soon because its production is being hindered by significant land requirements and rising costs, according to Oilprice.com.
Grains turn mixed after early pressure. Jon Scheve with Superior Feed Ingredients says the markets are searching for direction, but weather is still the main focus. He has marketing advice.
Corn-for-ethanol use totaled 416.9 million bu. in April, well below analysts’ expectations.
Alan Brugler, Brugler Marketing, says it was a risk off day in grain markets which were removing risk premium. They also did technical damage.
Alan Brugler, Brugler Marketing, says it was a risk off day in grain and cotton markets removing weather premium. The lack of money flow into grains, the stock market and crude oil was also evident to start June.
Consultancy StoneX cut its Brazilian safrinha corn crop forecast by 3.9% from last month. StoneX also cut Brazil’s 2023-24 soybean crop, which has been nearly totally harvested.
Cattle fall after lower weekly closes and softer cash trade, holding chart support. Hogs struggle on fund selling. Soybeans pull corn lower and wheat off its highs. Brad Kooima, Kooima Kooima Varilek, has more.
Grain futures ended lower for the week removing weather premium. Naomi Blohm, Total Farm Marketing, says, “It feels like it’s doing a warning shot just to remind us that the crop is getting planted.”
Technically, Jerry Gulke, president of the Gulke Group, says weather rallies can be fleeting and this week there were sell signals in the grain market.
The potential consequences of not renewing the USMCA include significant economic and trade disruptions, increased policy and regulatory uncertainty, weakened enforcement of labor and environmental standards.
Grain and cattle futures end mostly lower on Friday and were lower for the week. Naomi Blohm, Total Farm Marketing, says weather, crop ratings and what the funds want to do next will determine future market direction.
Corn futures closed lower each day this week in the biggest weekly loss since last July on the continuation chart. A portion of this week’s selling pressure can likely be attributed to long-term fundamentals...
Grains recover after three down days. Is this recovery all technical and will it last? Darin Newsom, Sr. Market Analyst for Barchart, says wheat has the best chance with concerns about drought in HRW areas.
Cattle and grains end lower so was it end of month profit taking or a trend change? Scott Varilek, Kooima Kooima Varilek says cattle will recover but grains need a new weather story.
Cattle were lower for a second day with China news kicking in algorithm selling, while hogs bounce. Grains lower removing weather premium but Scott Varilek, Kooima Kooima Varilek, says it’s a possible top.
The Fed noted, “Agricultural reports were mixed, as drought conditions eased in some districts, but farm finances/incomes remained a concern. Overall outlooks grew somewhat more pessimistic. . .
Vince Boddicker, Farmers Trading Company says corn and wheat see end of month profit taking in need of a new weather story, soybeans try to hold slight gains. Cattle trying to recover, hogs search for a low.