DuWayne Bosse with Bolt Marketing says grains staged a surprise rally on news of China soybean buys but farmer selling pressure also subsided ahead of first notice day on Friday.
Hillari Mason with Pro Farmer says farmers had to roll or sell December futures or basis fixed contracts before Wednesday or risk delivery and so most of the commercial positioning is done which will take pressure off the market.
Mike Zuzolo with Global Commodity Analytics says the grain complex also saw some buying interest on the lower U.S. dollar index, which reacted to U.S. economic data.
Jamie Gieseke with Paradigm Futures says the weakness in the grain markets last week and to start this week was tied to liquidation and pricing of basis fixed contracts against December futures before the delivery period starts. Once that’s out of the way what is the next move?
The announcement to close the Lexington, Neb., plant and transition to one shift in Amarillo shocked the beef industry. While local impacts will be significant, analysts urge producers to remain calm as the market fundamentals steady following the reaction.
Dave Chatterton with Strategic Farm Marketing says the soybean market is tired of rhetoric and wants to see results in the form of sales to China.
Brad Kooima with Kooima Kooima Varilek says cattle were limit down early Monday on news that Tyson Foods will be closing its Lexington, Neb. beef processing plant on Jan. 20 and the Amarillo, Texas plant will go down to one shift.
Chip Nellinger with Blue Reef Agri-Marketing says the soybean market has corrected its overbought status with the profit taking by the funds so the selling pressure may be over.
The company will end operations in early 2026 in the plant that employs nearly 3,200 people and can slaughter almost 5,000 cattle a day and convert its Amarillo, Texas, beef facility to a single, full-capacity shift.
Scott Varilek with Kooima Kooima Varilek says the market had been anticipating the tariffs to be lowered on Brazil beef for several days and it was part of the recent selloff in cattle. “So I think a lot of this was already penciled into prices.” he explains.