It was a lower week for livestock but a strong week for wheat, corn and soybeans by Friday, Agweek's Michelle Rook said on this week's Gateway Building Systems Agweek Market Wrap.
Corn, for instance, went above $6, with even cash trade in some places getting over $6, Randy Martinson of Martinson Ag Risk Management said. Part of that, he explained, is recent cold weather pushing back planting and lowering the yield potential of the corn crop. Part of that also is continuing strong demand, domestically and internationally.
Weather also is playing a big part in the strength of the wheat market, Martinson explained. The cool, dry conditions in the western two-thirds of North Dakota has led some farmers to stop planting. The situation, he said, is "dire."
"The market is trying to give them an incentive to go plant no matter what," he said.
He is anticipating Minneapolis wheat getting up to $6.95, though he wouldn't be surprised to see it break the $7 mark, either.
Soybeans were a follower much of the week until Friday, when rumors of hog herd expansion in China, sales to Bangladesh and rumors of sales to China gave the market some strength. Rook questioned whether it didn't seem like more of an oil-led rally, and Martinson said that did seem to play a part, as demand for both biofuels and oil for human consumption seemed strong.
"Boy, I don't think they have," he said.
A lot, he said, will depend on China. If China's herd has expanded and they quit importing U.S. pork, that will have a negative impact.
Cattle also were down, and it seemed like it may have been at least in part a matter of following the hog market. But Martinson said it was "not a good week at all" on the board, though cash trade was decent. Boxed beef continues to be up, the stock market indexes all are up, and demand seems to be there.