It was mostly a turnaround day as risk is priced in as much as desired and there were some bearish indicators:
South America is getting moisture and has become competitive. Ukraine may still produce some grain. HRW got some needed rains. Export sales were generally underwhelming.
This does not mean that the run-up in prices is over. Food is still a hot investment given tight global stocks, high priced fertilizer, and the chance of lower production. Deferred contract prices are lower but less so for wheat and corn than for soybeans. By contrast, deferred values in the livestock complex are higher as meat looks to become more precious. Over the past five trading sessions, soybeans remain higher, but corn and wheat have both sh...
What You Need to Know Today: U.S. launches naval escort operations in the Strait of Hormuz as Iran attacks UAE oil infrastructure, escalating geopolitical risk and supporting energy and broader commodity markets Biofuel demand entering uncharted territory, with soyoil valuation increasingly di...
The Middle East is said to be undergoing a transformation as economic priorities transcend security concerns. This is evidenced by diversification away from oil and the UAE’s departure from OPEC. Meanwhile, the Palestine issue has been deprioritized, and Iran has emerged as more destabili...
All eyes are shifting to the Senate following the House passage of a farm bill last Thursday. Senate Agriculture Committee Chair John Boozman (R-Arkansas) is targeting the end of May or early June for a bill markup. According to Boozman, the House “going ahead and passing something was re...
