The biggest news of the day is the fact that May crude oil futures traded to negative prices, posting a daily low of negative $40.34 (-$40.32) before settling slightly higher. U.S. crude oil storage capacity is basically nonexistent right now, helping create the price weakness and today’s collapse. May futures posted a $56/barrel drop today while June futures fell a mere $4.60 and closed at $20.43/barrel.
Some news outlets are reporting that a U.S. exchange traded fund (ETF), USO, is also partly responsible for the crash. According to Forbes, the USO fund owned 25 percent of the outstanding volume of May WTI crude oil futures as of last week. Because funds, especially ETFs, do not typically want to take delivery of futures co...
What You Need to Know Today: The corn and soybean markets closed slightly higher in low-volume trade. The wheat market was mixed, with HRW continuing its downward trek on improved moisture. As expected, the bearish cattle on feed report drove down cattle prices and pulled hogs down with it. Mi...
Monday, 25 May is a U.S. holiday, and both the markets and our office will be closed. Please note that the next issue of Ag Perspectives will be published on Tuesday, 26 May. The WPI staff wishes everyone a safe and enjoyable holiday weekend...
USDA’s monthly cattle on feed report was released today. The total number of cattle on feed in feedlots with 1,000 head or more capacity amounted to 11.6 million head, 102 percent of last year. Source: USDA, WPI Placements were up, but part of that is attributable to persistent drought c...
