It’s an off day in the market trade…except for the wheat market that has been on fire. Corn did have a bounce in recovery. Meat & wheat going hand in hand. Ethanol might have a part in that. Soybeans are confused. The meal market and demand are a big part of it. Aid for farmers coming from DC. Weather concerns in South America.
Dow drops again. It’s hard to ignore what is going on in the ethanol market. BUT there are several positives in the market trade. Rumors that China is buying wheat. Wouldn’t take much to flip the balance sheet. DDGs another long term positive. Farmers can lock in some interest rates on their loans, lock in fuel needs, could see a reduction in input costs for this year’s crop. Cattle has been something else of late. But there are some encouraging signs coming from the trade. Strong product demand.
Grains continued to go back to the lower…weakness will continue due to no real story to keep it going into the positive. End of March reports. South American Harvest-how is it moving along. Negative impact of the virus and demand. Coronavirus will continue to keep its hold. Livestock Coronavirus vs. ASF
Grains settled nearly opposite of Tuesday with soybeans higher, corn and wheat lower. Arlan Suderman, Chief Economist for INTL FC Stone, shares his thoughts on why the wheat bulls may have been a little overdone on Tuesday. Suderman also shares INTL FC Stones thoughts on Friday’s USDA Forum.
Currencies play a significant factor in grain export competitiveness around the world. Suderman looks into how the US Dollar is extremely strong against the Brazilian Real impacting soybean exports. The higher dollar though is not as big of a factor for US protein exports. Though there are logistical issues within in China limiting frozen meat exports from the US.
Suderman also updates on the latest happenings from China and the corona virus. As China looks to get its economy back on it’s feet that could mean a big stimulus package. Suderman explains how Chinese stimulus may be beneficial to US exports.