There were modest volumes on this last trading day of the week, except in soymeal and cattle where the goal was to get out of the former and into the latter. There were new contract highs, again, in cattle. Overall weakness was blamed on Argentina’s announced lower tax rates on commodity exports as noted in this report yesterday. However, that is somewhat ephemeral relative to the total supply and demand impacts of weather (see below). Overall, the big mover this week was the cattle market, and it still has room for increases. The March feeder cattle was 3.18 percent higher on the week.
The bottom line is that the dollar is overvalued, especially on an inflation-adjusted basis. Morgan Stanley reports that a ‘silent...
Key Market Insights Geopolitical Limbo: Geopolitical risk remained a key driver across global commodity markets today. President Trump stated that the Iran memorandum of understanding is not yet final and warned that military action could resume if negotiations fail. Both sides continue w...
Key Takeaways: Drought remains a major threat to global agricultural production, particularly in regions with limited rainfall and growing water scarcity. Commercially available drought-tolerant traits in corn, soybeans, and wheat have generally delivered modest yield improvements, limiting th...
Key Takeaways: Peace at last in the Persian Gulf? Over the weekend, the U.S. announced and Iranian officials confirmed a peace agreement, with formal ratification set for Geneva on 19 June. The announcement means the Strait of Hormuz is set to reopen fully and toll-free within 30 days.&n...
