Kyle Bumsted, Allendale Inc, joins the Fontanelle Final Bell from a dirt road near Ericson Nebraska. The market discussion centers around livestock. Heat is not only taking it’s toll on the row crops, but it also impacting cattle. This could help to decrease carcass weights. Which have been on the rise since the pandemic caused a backlog of fed cattle. Heat also discourages grilling though. As Bumsted says in the program, “Not many people want to stand in 100+ degree weather and grill a steak.” That creates the question of, where will demand fall going through the rest of summer? Bumsted believes that there will be plenty of meat coming to the market and this may put pressure back on the futures.
Bumsted has also been closely watching spreads and seasonal trends in the livestock markets. His research shows that feeders have a tendency to trend higher though the end of July into August. This happens to parallel when many large video auctions are also occurring.
Grains are not left out of the conversation. In the second half of the Fontanelle Final Bell, Bumsted looks at the technical and weather pattern driving the grain trade.
You can catch the full episode uninterrupted here:
Markets on Tuesday started with a risk on sentiment. By the close even the outside equities had faded on that sentiment. Grains ended mixed with spread action setting up between corn and wheat. Wheat is being sold on decent crop conditions, but also seasonal harvest market pressure. Shawn Hackett, Hackett Financial Advisors, joined the Fontanelle Final Bell and discussed the seasonality of the current marketing trends in the grains. Hackett is eyeing the Minneapolis spring wheat market as the signal for a turn around in the market. “Spring wheat is growing right now and very susceptible to a weather issue.” According to Hackett. During the Fontanelle Final Bell Hackett also highlights recent research his team has done about global crop insects and pests that could impact the markets later this year.
The second half of the Fonatenelle Final Bell is dedicated to livestock. Hackett starts with Class III milk futures and highlights that the recent upswing may be over done at $20. Hackett also doesn’t believe the live cattle lean hog spread can continue much higher.
Hear the full program here:
The second week of June brought plenty of data for commodity traders to sort through. The major report on the week was the WASDE on Thursday. Now that it is out traders seemed to shift their focus back to growing season fundamentals, like hot and dry conditions.
Kent Beadle with CHS Hedging was glad to see corn fight through the week to only see slight losses. “Especially given the sell off in the energy market corn was resilient to only lose 1 1/4 cents on the July contract.” Beadle said. Spreads and seasonal patterns are also starting to set up just prior to the official start to summer. Wheat futures are feeling harvest pressure. The latest crop progress report shows that winter wheat harvest is right on pace with the 5 year average.
Another positive to the trade this week was the continued buys of soybeans by China and unknown destinations. Beadle believes the buys may last through the end of the year before China switches back to South American sources.
You can hear all of Beadles comments on the markets and how it applies to marketing plans. here: