Planting progress tied in with the WASDE report made for an interesting week of trading. Darin Fessler with Lakefront Futures talks about the feel and emotion that is tied into the market right now. Then add the rumors of another fight building up between the U.S. & China, and that tops off the week in this edition of Trading Bits & Bytes.
Risk off across the board. Equities under pressure. Did we forget about yesterday’s WASDE report that fast? Global economy is it falling apart? Are we opening to quick? Has a negative tone been set? How is the ethanol market faring? How dry is it in the Western U.S.? Another drop in the cattle market …same battle with what the value of the animals are at the slaughter plants.
Reaction to the WASDE report. Big stocks to use ratio for corn. How will these numbers play out into the rest of the trading week? Significant acres remain unharvested in North Dakota last month, USDA will re-contact producers there in May to gather production data on those acres. We will find those numbers out in June. Ethanol production numbers from today’s report. Only one big number in soybeans & that was the drop in exports. Limit up trade came back to the cattle market for a Tuesday. How much outside influence is factored into the cattle market? Still some positive from the hogs in part from cattle but also cutouts from the hogs.
Chinese buying soybeans. WASDE on Tuesday. Est for 2020 carryout is 3.3 billion could be a new record. Largest corn crop on record. What about the stocks to use ratio? How will ethanol & feed demand fair? What are the soybean numbers looking like? Lower stocks & carryout for wheat. On the flip side livestock took a hit on a Monday for the cattle. Hogs were lower, but not as drastic as the cattle market.
Aaron Bertels with Crossroads Marketing talks about the trade issues that many are talking about, Movement of grain how that has been effected by COVID. A look at the upcoming WASDE report out next week.
Another limit up day in the livestock…what does that mean for the near term? Relationship between grain & livestock producers in these current times. Will we see $500 Choice boxed beef? We go through these feelings every year with market movements, just this year its escalated feelings. We are socially isolated on a regular day in ag, but as it continues the feels are getting more stressed. China Phase One…where do we sit? WASDE report due out on Tuesday.