Markets - General
A bearish reset of the corn and soybean markets is underway as they transition from tight drought-stricken old crop supplies to record production levels in 2023-24.
The May WASDE report is the first look at the new crop balance sheets. As old crop demand continues to be an area of concern, the trade was watching to see how aggressive USDA would be with new crop supply and demand.
China seems to have made the strategic decision to buy ag products from just about every global supplier but the U.S., largely a result of the rising trade tensions between the two countries.
Jerry Gulke’s marketing advice is to stay defensive: “You may not want to go long in these markets given the economy, but you probably don’t want to sell anymore.
Grain farmers might have started their Cinco de Mayo celebration early on Friday, with grain prices seeing some big gains.
USDA’s latest Crop Progress report shows while corn planting is now right on track with average, the soybean planting pace is well above average despite North Dakota and South Dakota farmers who are still sidelined.
Grain markets collapsed this past week, posting lower weekly closes on massive fund selling. Jerry Gulke says it’s the start of a major reset and the realization the U.S. is not competitive as China cancels corn buys.
China canceled more corn purchases this past week. As the country switches to cheaper sources from places such as Brazil, it puts more focus on a possible demand problem in the U.S. and causing beginning stocks to swell.
Record snowfall is catching up with several states as snowmelt starts to flood rivers. It’s already impacting traffic and the movement of ag goods on the upper Mississippi River.
Grains in the red with more fund selling and a China corn cancellation. Cattle trade 2-sided still consolidating with sketchy cash news. Can hogs build on Wed. strong close? Scott Varilek, Kooima Kooima Varilek