Commentary: Livestock markets continued their plunge as coronavirus fears and panic continues to grow. With travel bans, multiple event cancellations, sports suspensions and workers being told to stay or work from home demand destruction expectations continue to rise. You also have production soaring with huge slaughter numbers and weights much higher than last year providing the setting for a so-called …
Grain Spreads: Mine the Gaps
Commentary: A week to remember for sure in commodities. Massive price swings in every sector, enhanced volatility, daily limits and circuit breakers hit and then hit again. The fear factor is weighing high on investor psychology as the exodus out of equities and the selling of commodities has ramped up given the alleged demand destruction in the near term. When …
Livestock Report
Commentary: April Live Cattle tried to hold Tuesday’s gains early in the trading session but the constant pressure in the outside markets and the constant negative commentary about the coronavirus and the resultant concerns about large gatherings were too much for cattle to handle. The quarantining of ships, certain towns and cancellations of large events continues to cause demand concerns …
Grain Spreads: Still Coiling
Commentary: I am still of the opinion that we will start to see some type of food/grain inflation entering into the market soon. It comes on potential stimulus efforts that will be injecting millions of dollars into the market to shore up sections of the economy that have been by the Covid-19 virus and by weak energy sectors. The fear …
Livestock Report
Commentary: April Live Cattle opened higher as equity markets were strong as the markets opened. Cattle went limit up for most of the session with hiccups mid-morning and the end of the session as equities pulled back from their highs. The last equity pullback prevented a limit up settlement as price dipped and settled at 105.45 up 2.60 on the …
Grain Spreads: Potential Bargains
Commentary: Central banks slashing rates, bailout packages emerging, mortgage and payroll tax holidays being put forth by Central Banks and Governments are just some of the latest announcements that investors are grappling with in the last week. Oil Price wars amid a global pandemic of Covid-19 virus has instilled a sense of fear and potential panic by investors as US …
Corn Commentary
Commentary: The corn came under considerable pressure early. The selling abated as the day went on and the market closed mid range. The USDA will release a report tomorrow. There are many thoughts regarding this. It makes little sense to guess as the USDA has not done what conventional wisdom would dictate for a long time. The USDA balance sheet …
Livestock Report
Commentary: April Live Cattle gap opened lower as equity markets were once again tanking on continued coronavirus fears. Equity markets temporarily bounced leading to some closure of the gap, but a resumption of the decline sent cattle into a tailspin, eventually going down limit (briefly) at the end of the day. It settled at 105.75 down 2.90 from Thursday’s settlement. …
Grain Spreads: Old Crop/New Crop Turns
Commentary: Old Crop/New Crop corn and soybean spreads reversed course today as sellers turned active in front month contracts. July20/Nov20 beans fell 2 cents today to settle at 5.4 cent carry from a weekly high of a 1 cent carry. July/Dec corn traded upto a 1 cent inversion this week but fell 2.2 cents today to trade back to a …
Soy Complex and Corn Update
Commentary: The soy complex came under selling today. The market is focused on the lack of Chinese purchases. The Chinese have issued licenses. However, the current US soy price is not the cheapest in the world. Thoughts are the buying may not start until the US price is more competitive. The Brazilian and the Argentinian currencies are continuing their decline. …