In this week’s edition of Trading Bits and Bytes, Clay Patton discusses the factors influencing the commodity trade with John Payne of Daniels Trading in Chicago.
The two discuss the weekly market influences, including lower energy demand, a weakening US dollar and the Coronavirus.
Other Topics include:
- Lack of ethanol demand
- Large ethanol plants look to idle amid crude oil and unleaded gas prices lowest points in over 2 decades.
- For US corn producers Payne points out that ethanol grind makes up almost 40% of the countries corn demand.
- In general, the energy sector is struggling with lower demand as much of the world limits travel and needs less refined fuels petroleum or plant-based.
- China buys grain this week
- The latest USDA grain export sales and shipments show China as a big buyer of US wheat, corn, soybeans and pork.
- Disruptions continue in South American ports and grain supply chain.
- Boxed beef demand surges
- Meat flew off the shelf over the last two weeks.
- Retail and wholesale beef prices surged in response to the heavy demand. Now the question emerges does everyone have a multi-week supply on hand retail demand will suddenly drop off.
- Amid a strong consumer demand, the raw commodity of live and feeder cattle continue to struggle with lower prices.
Video: Trading Bits and Bytes for March 27, 2020