USDA Reports
Matt Bennett with AgMarket.Net says it was a money flow day as grains were influenced by the selloff in crude oil and the precious metal markets, plus the higher dollar.
With the lack of rebuilding the strong cattle market could be extended another year.
USDA’s annual report reveals the smallest total herd since 1951, with beef cow numbers falling to 27.6 million despite a slight uptick in replacement heifers.
Sam Hudson with Corn Belt Marketing says the grain markets all hit technical resistance on the charts and may have seen profit taking.
Brad Kooima with Kooima Kooima Varilek says he was concerned the trade might view a slightly bearish Cattle on Feed report placement number as a reason to sell but the market was more focused on the higher cash trade Friday.
Jerry Gulke, president of The Gulke Group, says the report provided some valuable lessons about marketing.
Shawn Hackett with Hackett Financial Advisors says with corn and soybean prices plunging at the beginning of the week in response to the bearish USDA report, the lower price levels stimulated end user buying.
Lance Honig, chair of the Agricultural Statistics Board and a NASS official, addressed farmer concerns in a Farm Journal interview explaining the major January data revisions that caused corn prices to sink on Monday.
Brian Grete with Commstock Investments says the corn market is still trying to digest the shock of USDA’s January reports. March corn futures came within striking distance of the Aug. 12 low at $4.10.
Brad Kooima with Kooima Kooima Varilek says strong cash has been supportive of the cattle futures and he expects a higher week in the fed market again this week. Grains are still digesting USDA’s bearish reports.