Commentary: The Chinese have purchased approx 1 mmt of corn. There are thoughts that they could purchase another 1.5 mmt in the near term. This is a positive to be certain. It looks as though the near term low basis may of 332 could be the temporary low. There are a few near term supportive factors. However, it can’t be …
Grain Spreads: Bargain Hunting
Commentary: I have been scanning the Board looking for value here amid the chaos and panic that has rattled markets and society the last few days. While it appears that this virus may stick around for longer than first anticipated, I suspect that prices will return to the mean across many sectors as industries eventually come back online and employees …
Ag Commentary
Commentary: Thoughts regarding the relationships in the AG sector. The Chinese have begun some purchases today. The exact quantities are not known at this time. However, the market fall put beans and corn in a relative position globally. This allowed the Chinese to buy at a par value. Looking out towards planting, it occurs to me that perhaps the acreage …
Livestock Report
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 …