July soybeans soared to a new contract high Tuesday and July corn challenged its high, before setting back. Expectations are for Wednesday’s May WASDE report to reflect a more bullish balance sheet for both old- and new-crop corn and beans. We saw a lot of buying the break today as we get ready for Wednesday’s WASDE report. Lots of money flow returning to the ag sector today causing us to erase much of Monday’s losses. Traders are gearing up for whatever USDA may bring us on Wednesday as that will be the first look at new crop balance sheets.
A lot of fundamentals at play in this market and today money flow and fund buying took the driver seat from weather. Wall Street is even talking about how much corn has rose this year and when they start talking about ag markets you know there is going to be money flow into the sector. Farmers may need to brace themselves for a very volatile session on Wednesday after seeing today’s buy back in the grain and oilseed markets.
The lean hog market is still trading lower even though the market’s fundamentals are shining bright. With a little more time, traders may come around to the idea of supporting the complex as they see that demand isn’t going anywhere soon. Feeder cattle traded lower with higher corn prices while live cattle held onto gains to close Tuesday.
Farm and Ranch Director Jesse Allen has our closing report: https://lightningstream.com/ajax/GetODFile.ashx?call=MIDWEST&fileid=1406
Also, more in-depth analysis with Jesse Allen and Matt Bennett of AgMarket.net on today’s episode of Market Talk:
https://open.spotify.com/episode/6HItqRpPmAPSeEehAmCrsh?si=xFHUBPijTti-_t0nBtD7Og
