Markets - General
Brian Grete, editor of Pro Farmer says, “Soybeans saw mostly corrective buying as funds have built a short position and may be covering some of those contracts heading into the WASDE report on Thursday.”
Grains mixed as soybeans see corrective buying, wheat falls on dollar strength, corn caught in the middle. Funds take profits in cattle after hitting chart resistance, hogs consolidate. Brian Grete, ProFarmer, has more.
Shipping disruptions and higher freight costs are to blame for the basis collapse and the large carries in all the major grains, says Jerry Gulke.
Jon Scheve discusses different rationale for why corn prices could rally in 2024.
“I don’t think we are going to see huge losses in prices from here forward, but these are not exciting prices,” says Jerry Gulke, president of the Gulke Group.
USDA weekly export sales released this week showed soybean exports fell 28% from the previous week. The story isn’t as dreary for corn, as corn exports have made a bit of a comeback from last year.
Jerry Gulke, president of the Gulke Group, considers the bounce off the lows a victory: “This was a win, even though we had markets down a little bit for the week.”
We asked seven commodity market analysts to give commodity market outlooks for 2024 With their insights, the bearish market conditions will carry over, with a slightly more optimistic outlook for soybeans over corn.
Dan Basse: “Importantly, managed money is sitting on their largest net short CBOT grain position in four years.”
Naomi Blohm: “The U.S. soybean story remains quite friendly to start 2024 with historically small ending stocks and strong crush demand.”