Markets - General
Corn futures got hit hard last week, and last month. Prices have found their footing to start June, but the Bulls have their work cutout for them.
The grain markets were lower for the week, except for hard red spring wheat. Jerry Gulke, president of the Gulke Group, says he thinks the pressure was largely in response to this week’s surprising trade developments.
It was a mixed bag across assets in Wednesday’s trade with equities relatively quiet while some commodities saw more movement. Here’s what caught our eye in today’s trade.
CFTC says expanding trading hours would ensure markets remain vibrant, while commercial hedgers and commodity brokers who work with farmers say it will fuel volatility and won’t make the markets stronger.
Wednesday was a busy day for markets, ranging from metals and energies to grains and indices. Oliver Sloup got some added insight from Market Strategist Phil Streible and Head of Research Dan White.
The bearish tone of the grain markets, especially corn and bean oil, stems from a lack of progress on tariffs and trade deals as well as speculation regarding the blending mandates for biomass-based diesel.
“China and Brazil are getting together. They’re going to build infrastructure, and they’re going to make SAF and they’re going to build railroads, and it’s not good for us and our future. That’s why we need new markets,” says Iowa farmer Tim Burrack.
Equity markets saw some continued strength on Wednesday but the momentum has slowed. More volatility and movement was seen in commodities with markets like gold, grains, and cattle drawing attention.
May futures are in the process of printing a monthly key reversal. Ironically, this is just what it did five years ago in August 2020. Coincidence you might think?