The markets, generally, ended down on Friday, AgweekTV's Michelle Rook said on this week's Agweek Market Wrap, sponsored by Gateway Building Systems. So what was the reason? Profit taking? The end of the month? Crop insurance prices being set?
"It was a lot of things coming into play," said Randy Martinson of Martinson Ag Risk Management.
The volatility, from highs early in the week and again on Thursday, to everything being down on Friday, may be something to get used to.
"This is just what we can expect going forward, right?" Rook asked.
"Most definitely," Martinson responded. "I don't think this is going to end any time soon."
In fact, Martinson thinks the market will stay fairly volatile until everyone knows not only what's in the ground but how it's growing, too.
Also up for discussion on this week's Market Wrap was the setting of new crop insurance numbers. Martinson said producers can expect 20-30% higher premiums this year due to price increases and volatility. However, Rook pointed out that those premium increases come with better floor prices and more of a safety net. Martinson agreed, saying this will be the first year since 2012 that producers should be able to lock in profits with crop insurance.
On the livestock side, cattle were down pretty much across the board, Rook said. The reason, Martinson explained, is that the cold spell and storm that hit much of the country backed up cattle and packers didn't have to go out and bid. Cash continues to trail futures.
"Hopefully next week we'll see a little better performance," Martinson said.
He also believes that if the House and Senate can pass a pandemic relief bill, it will bring "more comfort" to the stock market, inevitably providing some stability to commodities.