Grain markets are into their third quarter, and usually, the first month or so of the fourth quarter of the crop year tends to be the most aggressive in price discovery, usually done by mid-July. Will that pattern ring true again this year?
This winter, I spoke on behalf of Iowa State University Extension Service. Part of my talk was about demographics in China and India.
With the seasonality of February a weak month normally, traders were quick to liquidate longs and rumor that China would cancel sales and move its business to Brazil since harvest pressure has soybeans nearly 50 cents cheaper than U.S. soybeans.
The saying “cash is king” may be exercised more these days than in the past.
While most of the focus was on the USDA’s January reports this past week, there was other news that deserves attention.
At the Farm Journal marketing rally held in Chicago a year ago, all fifteen panelists were bearish for soy and grain prices for 2010.
The cattle market Dec. 22 took many traders by surprise. Dec. 22 was forecast to be a volatile day in various markets, and it was.
For months, market news has focused on China’s food inflation and the probable decimation of crops and livestock during the early droughts and floods that followed.
It has been some time since I addressed live cattle and feeders.
Since the end of June, USDA reports have induced volatility in grain and soybean values.
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