Kent Beadle with Paradigm Futures discusses with Farm Journal host Michelle Rook on why today’s grain prices were under pressure and what producers should be watching in livestock markets.
In this market update with Kent Beetle from Paradigm Futures, engages in a discussion on the current state of the grain markets. Beginning with a slight improvement in corn and wheat futures, but the overall trend is now lower, with livestock, particularly cattle, experiencing pressure. The ongoing farmer selling has been influencing grain markets, with a notable presence of a bearish market for Grains. The conversation touches on the option expiration day and speculations about whether farmer selling will ease off. Beetle emphasizes the impact of grower pricing of basis contracts on recent price actions.
Demand Strength, Meets Supply Questions.
The discussion moves to the demand side, where Beetle highlights the resilience in demand despite the recent market lows. Export sales are running ahead of last year’s figures, hog production has increased, and ethanol grind in corn remains strong. Beetle addresses concerns about supply problems, stating that demand is holding up well. He notes that the potential for significant demand may come from large speculators once a point is reached where there are no more sellers.
The conversation shifts to soybeans, with discussions about market reactions to lower estimates, especially from private entities. Beetle points out that the USDA tends to disregard lower estimates and discusses the market’s skepticism regarding private projections for Brazilian production.
On the technical side, the wheat market is trying to turn around, showing signs of potential reversal. However, hurdles such as the 50 and 100 day moving averages need to be overcome for a strong technical reversal.
The discussion concludes with an overview of the cattle market, expectations for the cattle on feed report, and the positive developments in the hog market despite adjustments in pork export reports. Overall, the livestock markets seem to be showing strength, with positive signs for potential upward movements
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