A tough week in the grains started out OK but ended with "pretty hefty losses," Randy Martinson of Martinson Ag Risk Management told AgweekTV's Michelle Rook on this week's Agweek Market Wrap, sponsored by Gateway Building Systems.
The drop, which hit corn and soybeans especially hard, seemed to be tied mostly to forces outside the crop. Funds liquidating was one issues, as was the relatively positive yield results on the ProFarmer tour. Another factor was rumors that the Environmental Protection Agency will put biofuels mandates below 2020 levels, which hurt the soybean oil market the most, Martinson said.
Rain in the western Corn Belt and Northern Plains likely didn't have a lot of impact on the markets, Martinson said. He said the rain may add to soybean test weights but is not likely to add to yield. The biggest thing the rain is expected to do is help recharge the soil for next year.
Wheat, Rook said, struggled largely due to the struggles of corn and beans as well as due to a strong dollar.
A cattle on feed report came out on Friday, which showed continuing tightening of the cattle herd. Boxed beef continues to rise, though, faster than the cattle market. Rook pointed out that the gap between the two actually widened since Congressional hearings were held about whether packers had too much power in the market.
COVID-19 fears are still part of the cattle market's issues, though, Martinson said.
A volatile week in the hog market ended up. Rook said sources have told her packers are searching for pigs, an indication of a tightening herd which could push the cash price higher.