Markets in a sour mood
Markets definitely haven’t been in a good mood lately as grains and oilseeds have been pressured by the dollar continuing to rally.
South America has also been seeing better weather, particularly in Argentina.
“When silver goes down, beans sort of go down,” Wayne Nelson of L&M Commodities told The Central Illinois Farm Network. “I don’t know why, but they do seem to match up.”
It has been a few days since we have seen Chinese buying and the announcement of a sale or two certainly wouldn’t hurt. Another USDA WASDE report comes next week with many wondering what the government will do with this one. Will they be cautious and leave everything unchanged?
Nelson said we are also seeing the unwinding of spreads where nearby has been quite a bit higher than the deferred. If we see buying dry up or a continued improving dollar, more price drops could occur.
“We are the cheapest in the world on corn right now because of a cheap dollar,” Nelson noted.
As the South American harvest continues to progress, we will know more on how their yields look.
The attention will soon turn to our own spring weather here in the U.S. If farmers get in the field early with plenty of acres planted, that could be negative for the markets. Nelson urges caution with sales at this point. He did push some sales recently with some of the breakout levels.
L&M Commodities can be reached at 800-382-0986.