AG MARKET UPDATE: APRIL 12 – 21
Corn had a rough week, especially to end the week falling over 20 cents after a small rally. Poor weekly exports, fund selling and the potential for rain in the driest parts of the US pushed prices lower this week. Corn planting was 8% complete to start the week, slightly behind where it was expected to be but in fine shape for this point of the year. Weather will remain a problem from the Midwest with cold temps continuing. Any news out of Russia and Ukraine will continue to move markets.
Soybeans had a similar week to corn with weakness into the weekend. Brazilian soybeans continue to be at a big discount to Chicago, $2.00, with their record production and storage shortage. China is not as active a buyer as expected in Brazil but less demand from them will lead to more from other places taking away from US exports. The soybean balance sheet has been tight so that would not be a bad thing for global supply but would not be friendly to getting back to $14 beans.
Cotton was limit down at one point during Thursday’s trade, before bouncing slightly for its worst day in over a month. The export report was less than impressive this week at a 15-week low. The chart broke through its support level during the down trade, changing how the charts look. The chance of rain in west Texas was one of the drivers as it only takes a few well-timed rains to make the markets nervous. While it is still only a chance of rain all eyes will be on if that rainfall comes to fruition. Any widespread rain in west Texas would lead to another limit move lower.
Equity Markets
The equity markets bled a little this week as the market looks for direction from earnings. The S&P 500 was unable to break through the 4,200 level, coming close before moving lower for the week. Earnings next week for some major companies (Microsoft, Google, Meta, and Amazon) will give us a lot of information that will determine the market’s next move.
Drought Monitor
The eastern corn belt has gotten plenty of moisture, some too much, so far this winter with the western corn belt dry.
Podcast
With every new year, there are new opportunities, and there’s no better time to dive deeply into the stock market and tax-saving strategies for 2023 than now. In our latest episode of the Hedged Edge, we’re joined by Tim Webb, Chief Investment Officer and Managing Partner from our sister company, RCM Wealth Advisors. Tim is no stranger to advising institutions and agribusinesses where he has been implementing no-nonsense financial planning strategies and market investment disciplines to help Clients build and maintain wealth and reach financial goals since
Inside this jam-packed session, we’re taking a break from commodities, and talking about the world of equities, interest rates, tax savings, and business planning strategies. Plus, Jeff and Tim delve into a variety of topics like:
- The current state of the markets within the wealth management industry
- Is there a beacon of hope, or is it all doom and gloom for the markets?
- Other strategies to think about outside of the stock market and so much more!
Via Barchart.com
Contact an Ag Specialist Today
Whether you’re a producer, end-user, commercial operator, RCM AG Services helps protect revenues and control costs through its suite of hedging tools and network of buyers/sellers — Contact Ag Specialist Brady Lawrence today at 312-858-4049 or [email protected].