Following the long Memorial Day holiday weekend, weather forecasts turned more ominous, sending grain and soy markets skyward, led by Minneapolis wheat. The northern, northwestern Plains, and the southern Canadian Prairies are facing a very hot and arid forecast for the next two weeks, worsening ongoing drought conditions. Brazil’s ag ministry issued a state of emergency alert for the first time ever as drought expands there. Overall, a strong day in the grain sector with hot and dry weather the main culprit of the bullish move higher.
It was a chaotic day for the livestock sector as the market scrambled to make sense of how a cyberattack on the world’s largest meat packing company JBS would affect day-to-day operations and, ultimately, the long-term trajectory of the market. There’s no denying when looking at the day’s estimated slaughter figures that production was substantially cut. Now the question everyone asks continues to linger: How long will this go on? Unfortunately, no one knows. The lean hog market leaned into Tuesday’s uncertainty and closed higher despite the chaos circling. After the long weekend and limited production over the Memorial Day holiday, it wasn’t surprising to see packers come in and buy upward of 11,000 hogs. But it was surprising given the unknown nature of the JBS mess.
Farm and Ranch Director Jesse Allen has the closing market report: https://lightningstream.com/ajax/GetODFile.ashx?call=MIDWEST&fileid=1406
Also, more analysis with Jesse Allen and Matt Bennett of AgMarket.net on today’s episode of Market Talk below: