Brazil
Allison Thompson with The Money Farm says a combination of factors drove soybeans higher including South American weather and China economic news. Corn and wheat followed. Cattle futures also made new highs for the move pushed by cash.
Scott Varilek, Kooima Kooima Varilek, says cattle are seeing a correction heading into the Cattle on Feed Report. Corn and soybeans are seeing hedge pressure and selling tied to extended forecasts showing rain in Brazil.
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.
Farmers are reclaiming much of the land that we nearly lost and we’re protecting it through innovation – making the land produce more but with the guarantee that the land continues to be productive for future generations.
USDA’s April WASDE report showed larger wheat and soybean ending stocks, but smaller ending stocks for corn. More surprising, still, was the lack of changes to South America’s crop estimates.
USDA cut its estimate for Brazil’s soybean production by 1 MMT in the March WASDE report, which was less than what the trade expected. USDA didn’t make any cuts to Brazil’s corn.
Jon Scheve discusses the likelihood of a market rally, and what needs to happen for it to become a reality.
Ag economists have little doubt Brazil will remain the world’s top exporter of soybeans, but with potential safrinha corn production problems, economists aren’t confident Brazil can hang on to the top spot in corn.
What caused the price pressure again this week? Naomi Blohm of Total Farm Marketing by Stewart-Peterson and John Payne of hEDGEpoint Global join U.S. Farm Report to discuss what the market is watching.