Grains were able to close in the green on Tuesday. Livestock were mixed with lean hogs higher, live and feeder cattle lower. Brian Splitt, Ag Market.Net, looks at the reasons why grains were insulated from the outside market sell off. Part of the reason being traders are hesitant to build short positions given the fact Chinese importers now have tariff exemptions that may prompt buying anytime.
Splitt also looks at the current market cycle and how previous contracts have acted just ahead of a WASDE report. That may be why it’s a good time to consider marketing some grain on the farm.
Listen to Splitt’s full comments right here:
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.