Markets
Today’s commodity market news. Featuring expert analysis from Michelle Rook, Jerry Gulke and Pro Farmer Editors.
The Fed being hellbent on fighting inflation will temper grain commodity prices in the year ahead.
Be careful to match cost exposures to revenue opportunities and not squeeze margins when one moves the wrong way. Remember: Things change quickly, so remain flexible.
For 2023, key market factors are the same as 2022 — China demand and South American production.
Questionable corn demand and expected production highs in South America bring major questions to the corn and soybean outlooks. Yet positive factors are evident.
“Human nature is to do nothing, but that means you can end up with three years of corn on your farm,” says Ben Brown, agricultural economist at the University of Missouri. “This strategy makes you proactive.”
Grains mostly lower with profit taking on better extended weather, but still supported by global supply concerns. Chuck Shelby, Risk Management Commodities says cattle and hogs supported by higher cash.
The International Grains Council (IGC) raised its forecast for 2023-24 global corn production to 1.22 billion metric tons, reflecting an improved outlook for the United States.
To encourage fair treatment of specialty crop and small farmers, Sen. Cory Booker (D-N.J.) and Rep. Andrea Salinas (D-Ore.) are proposing a new bill: the Insuring Fairness for Family Farmers Act (IFFFA).
AgDay TV Markets Now: Darin Newsom with Barchart says funds still buying and chasing Black Sea headlines in wheat, while profit taking hits row crops Thursday.
Wheat ends slightly higher Thursday, but corn and soybeans finally set back. Cattle hit new highs then crashed despite higher cash. Darin Newsom with Barchart has the analysis.
The grain markets this week had trading ranges typical of a daily range a few months past. They appear to be calming down ahead of USDA’s February reports and USDA’s Ag Outlook Forum, says Jerry Gulke.
“There’s a place that you put on risk and there’s a place that you take it off. So, we decided to take some money off and put in the bank,” says Jerry Gulke, president of Gulke Group.
The situation in the grain markets this spring looks much different than a year ago, says Jerry Gulke, president of Gulke Group. Unfortunately, the picture is not as price positive for the 2023 crops.
With the popularity of electric and hybrid vehicles growing, long-term gasoline use could drop, taking ethanol consumption with it. Will ethanol continue to be the juggernaut in the corn market?
The grain markets are focused on planting progress — or the lack thereof. Jerry Gulke says the markets are building in weather premium as progress could see delays periodically especially in northern areas.
Sometimes it isn’t a matter of what direction prices are headed but where they are not headed. USDA has shaved demand, especially in corn. The long-term outlook might show corn prices have lower targets yet to come.
The major debate this year has been one of perceived tight stocks versus how high prices have or will impact global demand for U.S. agricultural commodities.
The 2022/23 crop season could post two records in Brazil: a record 313 million tons of soybeans, corn, cotton, rice and wheat and a record storage deficit of more than 100 million tons.
Iowa farmer Ben Riensche is excited about the opportunities current margins are providing to reinvest in his operation. He provides these tips for spending money during good times.
Markets can tell a story, especially after a journey through headwinds, political strife and wars. March soybeans did that in 2022.
Markets can tell a story, especially after a journey through headwinds, political strife and wars. March soybeans did that in 2022.
Ag families experience recessions most tangibly through their non-farm personal connections, making them worth watching, regardless of farm economics.
Technically speaking the price action of Chicago, Kansas City and Minneapolis wheat varieties are signaling a change is coming — one that might not be recognized until the price ship has sailed.
Here are the key market headwinds ahead for the cattle industry.
It didn’t start with the swing of an ax in the Amazon or by an explosion in Kiev. Both contributed, but the shifts in global grain flows is a multifaceted prism through which the future is continuing to evolve.
The value of capital assets and cash flow were concerns in 2008 — just as they are today. The evolution of dealing with inflation has yet to impact ag directly, but history shows a wake-up call is in process.
Grains two-sided with profit taking & hedge pressure offset by weather & global supply concerns. Live cattle make new highs then crash, hogs pushed by a rising cash index. Mike Minor, Professional Ag Marketing.
Grains mixed with profit taking, hedge selling offset by weather and war concerns. Cattle higher with the softer corn and higher cash ideas, with the LHI also pushing hogs. Scott Varilek, Kooima Kooima Variilek.
AgDay TV Markets Now: Bryan Doherty with Total Farm Marketing says grains close higher adding more war and weather premium. New crop corn and soybeans and even wheat close above key chart areas.
Grains higher adding risk premium tied to war and weather. How high do prices project? Live cattle hit more contract highs, milk futures were soft but have they bottomed? Bryan Doherty, Total Farm Marketing.