It was, AgweekTV's Michelle Rook said on this week's Agweek Market Wrap, "not a good week in the grains." And a lot of that had to do with weather.
While the weather in the western Corn Belt and Northern Plains remains hot and dry, with ever-expanding drought, the eastern Corn Belt is the "garden spot," Randy Martinson, of Martinson Ag Risk Management, said.
Traders seem to be operating under the expectation that good yields in the east will make up for expected poor yields in other corn growing areas, Martinson said. He indicated some incredulousness that the math will work out on that.
While corn took an especially big hit this week, soybeans and what also were down. Rook pointed out that soybeans, though, remained above their 100-day moving average and $13. Spring wheat, Rook and Martinson said, will have a hard time finding much higher prices despite poor crop conditions because of the relatively good winter wheat crops.
The World Agricultural Supply and Demand Estimate is due out on Monday, and Martinson expects some changes in ending stocks for all of the crops, based on acreage changes and yield expectations.
In the livestock markets, cattle were down, which Martinson said was likely partly due to decreases in boxed beef prices. He said that indicates there may be issues with domestic demand. Some consumers may be looking at pork instead.
The hog markets were up, and part of that seems to be from increased exports and renewed concerns about African Swine Fever in China.