Agriculture News
USDA’s Cattle on Feed Report is bearish, as the April 1 feedlot inventory and March placements both topped the highest pre-report estimates.
Corn and soybean basis each dropped over the past week, but the respective cash prices surged.
Corn futures faced light followthrough selling in overnight trade, while soybeans firmed. Wheat futures are mixed to mostly firmer this morning.
Overnight price action in the grain and soy markets was quiet and choppy.
The winter wheat CCI ratings are below the five-year averages, especially the HRW crop.
Short-term trend turns bullish for SRW wheat, soyoil.
Corn futures posted contract highs overnight, with front-month May futures poking above $8.00 – the 2013 high on the continuation chart that was matched earlier this year. Wheat and soybean futures were also strong.
Disconnect between prices and production threatens to create a “volatility trap” in commodities and discourage investment in the sector, something that could threaten the supercycle.
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