Market to Market - Market Analysis

The relations involving Hong Kong and China kept traders' attention for much of the week before a hot and dry forecast changed focus. For the week, July wheat gained 12 cents and the nearby corn contract gained 8 cents. The Chinese purchased several cargoes of Brazilian beans leaving a cheaper U.S. product in the bins. The July soybean contract rallied 8 cents. July soybean meal declined 90 cents per ton. July cotton lost 2 cents per hundredweight. Over in the dairy parlor, June Class III milk futures added $1.30.

The market shrugged off government payments plans in favor of trying to figure out if China was in or out of the U.S. grain market. For the week, July wheat gained 9 cents and the nearby corn contract was down a penny. Limited global demand has given the soy complex cold, wet feet. The July soybean contract fell a nickel. July soybean meal declined $3.40 per ton. July cotton lost 64 cents per hundredweight. Over in the dairy parlor, June Class III milk futures added 30 cents.

Good planting weather, Chinese buying and a WASDE report made for mixed markets. For the week, July wheat dropped 22 cents and the nearby corn contract was unchanged. Chinese buying and trade talk met a bullish WASDE in the soy complex as the July soybean contract fell 12 cents. July soybean meal weakened $3.30 per ton. July cotton increased $1.98 per hundredweight. Over in the dairy parlor, June Class III milk futures jumped again, this time $3.12. Another volatile week in the livestock sector. June cattle improved $2.35. August feeders dropped $5.87.

Sales to China and predictions of bad weather in the U.S. moved the commodity markets slightly higher. For the week, July wheat gained 6 cents and the nearby corn contract improved a penny. Pressure by the Trump Administration on China to live up to the Phase 1 deal and threats of freezing weather helped move the July soybean contract higher by a cent. July soybean meal weakened $1.70 per ton. July cotton increased 43 cents per hundredweight. Over in the dairy parlor, June Class III milk futures rallied $1.53. Another volatile week in the livestock sector. June cattle jumped $7.40.

Yeager: Renewed Chinese buying collided with good planting weather and profit taking leaving the commodity markets mixed. For the week, July wheat fell 14 cents and the nearby corn contract lost a nickel. Late week purchases by China helped move the July soybean contract higher by a dime. July soybean meal weakened 10 cents per ton. July cotton gained 21 cents per hundredweight. Over in the dairy parlor, May Class III milk futures rallied 55 cents. A big week in the livestock sector.

The commodity markets felt the strain as oil had its own black swan event on Monday. By the final session, lack of demand ran into rumors of renewed Chinese buying. For the week, July wheat dropped 3 cents and the nearby corn contract fell six cents. China’s rumored buying boosted the soy complex midweek but the trade ran into competitive pricing from Brazil and more demand issues as the July contract finished lower by 3 cents. July soybean meal weakened 50 cents per ton. July cotton gained $2.77 per hundredweight. Over in the dairy parlor, May Class III milk futures fell 53 cents.

Yeager:

The WASDE report, rumors of Chinese buying and U.S. farmers returning to the field gave the commodity markets something new to chew on. The final session was Thursday because the markets were closed for Good Friday. For the holiday shortened week, May wheat gained 7 cents and the nearby corn contract improved a penny. The May soybean contract added 9 cents. May soybean meal lost $10.70 per ton. May cotton rallied $3.39 per hundredweight. Over in the dairy parlor, April Class III milk futures fell another 51 cents.

For the week, May wheat lost 22 cents and the nearby corn contract dropped 15 cents. The May soybean contract tumbled 27 cents. May soybean meal lost $19.90 per ton.  May cotton shed 35 cents per hundredweight. Over in the dairy parlor, April Class III milk futures plummeted $1.20. A devastating week in the livestock sector with multiple limit-down days in the trade. June cattle cut $8.58, May feeders slashed $12.83 and the June lean hog contract shed $15.92, a fall of nearly 25 percent. In the currency markets, the U.S. Dollar index increased 204 ticks.

The commodity markets dealt with reduced biofuel production, renewed Chinese buying, and rainy weather in South America. Added to it was the shortest bear market in history on Wall Street and optimism over the CARES Act. For the week, May wheat shot up 32 cents and the nearby corn contract found 3 cents. The May soybean contract jumped 19 cents. May soybean meal lost $2.10 per ton. May cotton fell $2.35 per hundredweight. Over in the dairy parlor, April Class III milk futures dropped 81 cents. The livestock sector was mixed.

This is the Market to Market Report. Yeager:

The commodity markets were pressured lower as coronavirus fears were combined with South American weather reports and the cancellation of some Chinese purchases. For the week, May wheat lost a dime and the nearby corn contract dove 10 cents. The May soybean contract plummeted 43 cents. May soybean meal lost $5.60 per ton. May cotton fell $2.30 per hundredweight. Over in the dairy parlor, April Class III milk futures lost 7 cents. The livestock sector was limit down in the final session.

The commodity markets chewed on weather and currency values in South America, limited Chinese buying and the continued effect of the coronavirus. For the week, May wheat lost 9 cents and the nearby corn contract rose 8 cents. The May soybean contract lost only 2 cents after trading as much as 18 cents higher earlier in the week. May soybean meal lost 50 cents per ton. May cotton bumped up $1.30 per hundredweight. Over in the dairy parlor, April Class III milk futures lost 16 cents. The livestock sector was mixed.

The coronavirus dominated the commodity markets leaving many traders seeing red and shifting to a risk-off stance. For the week, May wheat lost 27 cents and the nearby corn contract sank 13 cents. The fact the May soybean contract lost only 6 cents fails to show the pressure it was under from good weather and a fast harvest in South America. May meal was a winner, gaining $10.80 per ton. May cotton plunged $7.51 per hundredweight. Over in the dairy parlor, March Class III milk futures lost 31 cents. The livestock sector took it on the chin.

The commodity markets chopped around waiting for news from the Outlook Forum and then a Friday morning tweet from the President was added into the mix. For the week, May wheat bumped up eleven cents and the nearby corn contract lost a penny. The May soybean contract fell 4 cents as Chinese buying failed to materialize and South American prices continue to be more attractive. May meal dropped $1.80 per ton. May cotton rose 59 cents per hundredweight. Over in the dairy parlor, March Class III milk futures lost 38 cents. The livestock sector finished mixed.