Recent Livestock Analysis
Market Commentary
CBOT trade was mixed to end the week with wheat posting the largest moves. Wheat futures turned sharply lower as a mix of harvest pressure on cash prices and modest profit taking pressured the market. Soyoil rallied again, which helped support soybean prices while corn futures were slightly hig...
CFTC COT Report Analysis
The attached PDF offers graphical depiction and seasonal analysis of managed money and commercial traders' net position in key agricultural commodity markets. The data is, of course, taken from the CFTC's weekly Commitment of Traders report, using the futures only data. WPI recently completed a...
Unemployment and Food Costs
Today’s report that the jobless rate fell in the U.S. was good news that the economy is reviving. Food demand is relatively inelastic, though there can be some changes in quality. If there are impacts, they should be inverse, meaning less money to pay for food should cause food prices to...
Summary of Futures
Jul 20 Corn closed at $3.3125/bushel, up $0.0225 from yesterday's close. Jul 20 Wheat closed at $5.1525/bushel, down $0.085 from yesterday's close. Jul 20 Soybeans closed at $8.6775/bushel, up $0 from yesterday's close. Jul 20 Soymeal closed at $289.1/short ton, down $0.7 from...
The Incredible Surge of “Cheese Milk”
The June Class III milk futures contract finally gave up some ground today dropping to $19.75 during trading but rallying to close at $19.80/cwt, down $0.41 but still the highest futures price since 2014. More remarkable, at its peak the contract gained more than $9.00 over 30 days. And, it ma...
Export Sale
Wheat: Net sales of 179,500 metric tons for 2019/2020 were down 14 percent from the previous week and from the prior 4-week average. Corn: Net sales of 637,500 MT for 2019/2020 were up 49 percent from the previous week, but down 19 percent from the prior 4-week average. ...
Market Commentary
Today was a breakout. The only market in the red at COB was soyoil. After wobbling narrowly up and down for days based on only minor news headlines, reports of weather troubles in wheat and demand for soy encouraged today’s more substantive market response. The viewpoint that China would...
Livestock Round Up: Meat Retailing During COVID: It’s a Grind
Someday in the near future we can envision an entire introduction to micro-economics textbooks using the COVID-era meat sector to illustrate virtually all the basic theories of the discipline. Of course, there is supply and demand allocation (panic buying at groceries), shifting supply curves (...
Summary of Futures
Jul 20 Corn closed at $3.29/bushel, up $0.05 from yesterday's close. Jul 20 Wheat closed at $5.2375/bushel, up $0.1175 from yesterday's close. Jul 20 Soybeans closed at $8.6775/bushel, up $0.1025 from yesterday's close. Jul 20 Soymeal closed at $289.8/short ton, up $3.5 from y...
Meat Packer Concentration – Again
We note that 11 state Attorneys General have asked the U.S. Justice Department (DOJ) to investigate the anti-trust and price fixing implications of the high degree of concentration in the meat packing industry. This request was seconded by several members of Congress including Senator Chuck Gra...
Market Commentary
The CBOT continued its strength on Wednesday, buoyed largely by rising Russian/Ukrainian FOB wheat prices and continued strength in the Brazilian real. Despite improving weather for Europe and the Black Sea region, the market remains concerned about Black Sea supplies, especially after Ukrainia...
Summary of Futures
Jul 20 Corn closed at $3.24/bushel, down $0.0025 from yesterday's close. Jul 20 Wheat closed at $5.12/bushel, up $0.04 from yesterday's close. Jul 20 Soybeans closed at $8.575/bushel, up $0.07 from yesterday's close. Jul 20 Soymeal closed at $286.3/short ton, up $2.6 from yest...
Market Commentary
CBOT trade was mixed to end the week with wheat posting the largest moves. Wheat futures turned sharply lower as a mix of harvest pressure on cash prices and modest profit taking pressured the market. Soyoil rallied again, which helped support soybean prices while corn futures were slightly hig...
CFTC COT Report Analysis
The attached PDF offers graphical depiction and seasonal analysis of managed money and commercial traders' net position in key agricultural commodity markets. The data is, of course, taken from the CFTC's weekly Commitment of Traders report, using the futures only data. WPI recently completed a...
Unemployment and Food Costs
Today’s report that the jobless rate fell in the U.S. was good news that the economy is reviving. Food demand is relatively inelastic, though there can be some changes in quality. If there are impacts, they should be inverse, meaning less money to pay for food should cause food prices to...
Summary of Futures
Jul 20 Corn closed at $3.3125/bushel, up $0.0225 from yesterday's close. Jul 20 Wheat closed at $5.1525/bushel, down $0.085 from yesterday's close. Jul 20 Soybeans closed at $8.6775/bushel, up $0 from yesterday's close. Jul 20 Soymeal closed at $289.1/short ton, down $0.7 from...
The Incredible Surge of “Cheese Milk”
The June Class III milk futures contract finally gave up some ground today dropping to $19.75 during trading but rallying to close at $19.80/cwt, down $0.41 but still the highest futures price since 2014. More remarkable, at its peak the contract gained more than $9.00 over 30 days. And, it ma...
Export Sale
Wheat: Net sales of 179,500 metric tons for 2019/2020 were down 14 percent from the previous week and from the prior 4-week average. Corn: Net sales of 637,500 MT for 2019/2020 were up 49 percent from the previous week, but down 19 percent from the prior 4-week average. ...
Market Commentary
Today was a breakout. The only market in the red at COB was soyoil. After wobbling narrowly up and down for days based on only minor news headlines, reports of weather troubles in wheat and demand for soy encouraged today’s more substantive market response. The viewpoint that China would...
Livestock Round Up: Meat Retailing During COVID: It’s a Grind
Someday in the near future we can envision an entire introduction to micro-economics textbooks using the COVID-era meat sector to illustrate virtually all the basic theories of the discipline. Of course, there is supply and demand allocation (panic buying at groceries), shifting supply curves (...
Summary of Futures
Jul 20 Corn closed at $3.29/bushel, up $0.05 from yesterday's close. Jul 20 Wheat closed at $5.2375/bushel, up $0.1175 from yesterday's close. Jul 20 Soybeans closed at $8.6775/bushel, up $0.1025 from yesterday's close. Jul 20 Soymeal closed at $289.8/short ton, up $3.5 from y...
Meat Packer Concentration – Again
We note that 11 state Attorneys General have asked the U.S. Justice Department (DOJ) to investigate the anti-trust and price fixing implications of the high degree of concentration in the meat packing industry. This request was seconded by several members of Congress including Senator Chuck Gra...
Market Commentary
The CBOT continued its strength on Wednesday, buoyed largely by rising Russian/Ukrainian FOB wheat prices and continued strength in the Brazilian real. Despite improving weather for Europe and the Black Sea region, the market remains concerned about Black Sea supplies, especially after Ukrainia...
Summary of Futures
Jul 20 Corn closed at $3.24/bushel, down $0.0025 from yesterday's close. Jul 20 Wheat closed at $5.12/bushel, up $0.04 from yesterday's close. Jul 20 Soybeans closed at $8.575/bushel, up $0.07 from yesterday's close. Jul 20 Soymeal closed at $286.3/short ton, up $2.6 from yest...