The May World Agricultural Supply and Demand Estimates report shook up the markets, and corn took the biggest hit.
AgweekTV's Michelle Rook and Randy Martinson of Martinson Ag Risk Management discussed the fallout from the report on the Agweek Market Wrap, sponsored by Gateway Building Systems.
Corn took the biggest hit, percentage-wise, Rook said, listing losses across the board. So does that mean the top is in for corn?
"It would appear it may be," Martinson said.
Though South America continues to have production issues and demand is still strong, Martinson said crop conditions for much of the Corn Belt have improved substantially, giving strength to the chances for a solid crop, despite western Corn Belt and Northern Plains drought.
Plus, he said competitors like Brazil, Ukraine and China are expected to increase their production of corn.
"That pulls down our exports a bit for demand," he said.
Wheat, which has increasingly found its way into livestock feed rations because of the cost of corn, also followed corn lower. However, Martinson said drought conditions likely mean spring wheat could still see another price increase.
"We're going to have an issue with spring wheat production," he said.
Soybeans held up better than the other grains, Rook said. Martinson expects pressure to persist in the soybean market, as the crop will need plenty of acres planted and strong yields to meet expectations in the WASDE.
"We had a down week . . . but we did no damage to the charts," he said.
Martinson expects the cattle market to recover a bit with the drop in the price of corn. However, reports this week indicated beef production is up and exports are down, which still hurt a bit. But based on boxed beef prices, demand is strong, and Martinson expects that to continue.
Hogs posted their first lower weekly closes in months, Rook said, questioning whether that market has found a top. Martinson indicated he doesn't think it's topping but just saw some short-term pressure.