Corn
Mark Schultz with Northstar Commodity says strong demand continues to support corn and soybeans but it hasn’t been enough to push prices above chart resistance.
Joe Kooima of Kooima Kooima Varilek says grains are seeing support from strong demand and more export business. Cattle consolidate with election uncertainty, while hogs rebound from early weakness in all but the December contract to make new highs.
Jerry Gulke, president of the Gulke Group, says as harvest wraps up it is a good time to review the year’s markets.
The October Monthly Monitor reflects cautious optimism in certain areas of agriculture, marked by export strengths and potential price recoveries, but shadowed by long-term rebuilding challenges, weather dependencies and the impact of the upcoming election.
Scott Varilek with Kooima Kooima Varilek says corn and soybeans were supported by strong demand initially but ended off highs running into chart resistance and on election jitters. After another volatile day in cattle is the market topping?
Mexico came in with another big buy of U.S. corn on Friday. USDA reported a sale of 781,322 metric tons of corn for delivery to Mexico.
Darin Newsom, Sr. Market Analyst with Barchart says some of the early support in the grain markets Friday morning is coming from strong export demand.
The $700 million deal frees AGCO up to focus on its machinery and precision ag technology products.
Joe Santos, Director of the Ness School of Management and Economics at SDSU, says, “Interest rates if they remain relatively high compared to history I think that will continue to tighten economic performance in general including agricultural performance.”
The latest efforts in Washington D.C. could change the size of opportunity for farmers who sell their grain with a carbon intensity score.
Jerry Gulke, president of the Gulke Group, says price performance might have been a little disappointing but that’s because of USDA’s lofty ending stocks estimates at nearly 2 billion bushels for corn and 550 million bushels for soybeans.
Bryan Doherty, Total Farm Marketing, says grains saw profit taking on Friday after hitting chart resistance and a pick up in farmer selling.
Scott Varilek with Kooima Kooima Varilek says grains ease on profit taking and farmer selling. Cattle make more new highs for the move on hedge lifting and higher cash trade which was generally up $2 yesterday then fade.
Tomm Pfitzenmaier with Summit Commodity Brokerage says corn was pushed Thursday by strong demand with 15.5 million bushels of flash sales and weekly exports of 142 million bushels, the highest in 3 1/2 years.
Rich Nelson with Allendale, Inc. says while soybean export demand is improving if South America continues to receive rain prices could be too high.
Rich Nelson of Allendale says corn and soybeans showed resilience rallying into the close on strong demand. However, he thinks it may be exporters front loading their purchases. Cattle reverse in reaction to the McDonald’s E.coli story.
Alan Brugler, A and N Economics, LLC says grains are caught in a tug of war between farmer selling and strong cash basis levels due to strong demand.
Craig Turner with StoneX says grains saw technical buying off support areas but demand is also strong.
Allison Thompson with The Money Farm says corn and soybeans bounced off chart support and are seeing fund short covering but also strong end user buyer with another 14.2 million bushels of corn sold to Mexico.
Dave Chatterton, Strategic Farm Marketing, says row crops are in a tug of war that could keep the markets sideways for a while.
Brad Kooima of Kooima Kooima Varilek says cattle were due for a slight correction and could ease their overbought status just by moving sideways. Grains are rebounding in part due to fresh flash export sales on corn and soybeans.
“The bottom line is the function of the market — when you have too much, you become the cheapest seller, not necessarily the cheapest producer,” says Jerry Gulke.
Tommy Grisafi, Advance Trading, says grains faded bullish export news and closed lower Friday and for the week.
Investigators with the U.S. Department of Labor’s Occupational Safety and Health Administration found ADM failed to inspect or test critical safety systems in the explosion that injured three workers.
Craig Turner of StoneX says end users have seen current grain prices as a value which has supported the markets and if you add in inflation grains could be carving out new trading ranges.
Grains reverse to close higher Thursday as Darin Newsom with Barchart says end user or commercial buying stepped in. He says there is strong demand for corn in soybeans at current price levels which is a bullish sign.
Garrett Toay, AgTraderTalk, says corn and wheat traded higher on technical or corrective buying as well as big flash export sales, noteably to Mexico.
Our brief video takes you through evaluating stand losses from pest pressure, disease issues and dry conditions in a central Illinois cornfield. These insights can help you plan for next season’s bumper yields.
Scott Varilek, Kooima Kooima Varilek, says corn and soybeans are up after the news of 80 million bushels of corn sales and 6.4 million bushels of soybeans sales. Cattle opened higher before profit taking and hedge pressure set in.
Kent Beadle of Paradigm Futures says grains saw follow through selling pressure after a lower day Friday. The complex also saw spillover from the risk off day in outside markets including the higher dollar and lower crude oil.