Well, the grain market found its bullish swagger again on Friday as we recovered from Thursday’s sharp losses. One day after heavy noncommercial selling took grain prices sharply lower, those same grains turned quickly higher Friday, taking back much of Thursday’s lost ground. It continues to be a volatile time for grains with outside topics distracting traders from stressful crop conditions in the field.
Thursday’s large losses ignored the likely news that row crop conditions probably declined this week and are in line to show lower ratings from USDA on Monday afternoon. There are favorable rain chances the next seven days, but states in the western Plains will mostly be missed. Also, one day after China’s Premier talked down grain prices and noncommercial selling ensued, now there are unconfirmed rumors of China possibly buying new-crop soybeans from the U.S.
The fearless feeder cattle complex has traded in its quest for higher prices to once again scale lower amid rallying corn prices. The live cattle and lean hog contracts are traded mixed to higher after a tough week, regaining some position ahead of the weekend.
Farm and Ranch Director Jesse Allen has our closing report: https://lightningstream.com/ajax/GetODFile.ashx?call=MIDWEST&fileid=1406
Also, more market analysis with Jesse Allen and Chad Hart from Iowa State University on today’s episode of Market Talk: