Markets - General
On Thursday, the market closed lower, but prices made a comeback Friday. Joe Vaclavik says despite the trade’s reaction after the purchase were confirmed, this week’s buys create an even better story for corn demand.
The outlook for agriculture is uncertain, but more optimistic than it was a few months ago, according to the 2021 U.S. Baseline Outlook report compiled by FAPRI.
The Fed on Wednesday repeated its pledge to keep its target interest rate near zero for years to come after projecting a rapid jump in U.S. economic growth and inflation this year as the COVID-19 crisis winds down.
The same week U.S., Chinese officials will meet for the first time under the Biden Administration, China made two big corn purchases. Arlan Suderman of StoneX says while it may seem coincidental, the demand is real.
This year could post the largest corn, soybean and wheat acreage since 2014. That’s according to Allendale’s annual, nationwide producer survey.
In just over two weeks, USDA will issue its Prospective Plantings report. With a record number of corn and soybean acres expected, analysts think the USDA report may not produce many surprises.
Global demand is focusing on China’s upcoming needs, which are largely unknown. The market is watching to see if they will buy more, cancel purchases, or delay shipments to next season.
Growing worries about just how bad ASF may be in China took hold of the soybean meal market this week, as prices trended down to levels the market hasn’t seen since December.
As we’ve discussed many times on AgriTalk, current fundamentals and the balance-sheet trends from USDA demand you maintain pricing flexibility.
The March WASDE report left corn and soybean supply and demand unchanged.