LEONARD LUMBER REPORT: It was a good week for July futures as the cash attempt to bottom helped support it
The Lumber Market: It was a good week for July futures as the cash attempt to bottom helped support it. July's struggle today is its premium to cash. While there is a good amount of time left, the month can only get so far away from it. Futures tend to carry about a $30 premium to cash early in the cycle. It has been much greater in the recent past, but today's appetite for risk is limited. The producer side of the industry will again try to rein in supply. Over the years they have not been able to limit ...
LEONARD LUMBER REPORT: The futures market quietly drifted lower last week
The Lumber Market: The futures market quietly drifted lower last week ending down $15.50. July futures have been lower 13 out of the last 14 sessions. The cash market was also weak. 2x4 was off $10 while other items went into a freefall. Cash can't create momentum, and the futures market is honed in on that. The make up in futures is also turning bearish. We saw the industry exit 486 shorts while the funds added 402 shorts. We talked about that red flag a while back. The funds and algo's disregard trendlines and RSI's. I have noever seen the ...
AG MARKET UPDATE: APRIL 14 – 29
Over the past two weeks, corn futures have experienced significant volatility, primarily from trade policy developments and supply and demand dynamics. In early April, the market faced pressure as the U.S. implemented tariffs on imports from Canada, Mexico, and China, prompting retaliatory measures, including a 15% tariff on U.S. corn by China. This escalation raised concerns about reduced export demand, leading to a sell-off in corn futures. However, the market rebounded when President Trump announced a delay in the implementation of tariffs on Mexican goods, alleviating fears of diminished demand from Mexico, the largest importer of U.S. corn. The market ...
LEONARD LUMBER REPORT: The futures market scratched and clawed to rally a few dollars last week
The Lumber Market: The futures market scratched and clawed to rally a few dollars last week while the cash market searched for a bottom. The futures market did rally about $18 off its Monday's lows, but it was a grind. The isn't any confidence on the upside so any follow through will be limited. Cash does look better, but not enough to bring in the futures buyers. The next part of the cycle is the mills selling wood and building files. That could take time and keep things flat. The general market is flat and confused for the upcoming construction ...
AG MARKET UPDATE: MARCH 31 – APRIL 14
Old crop corn has had a strong rally over the last 2 weeks, having a 40 cent rally after trading relatively flat since its 80 cent pullback in February. While markets were rallying before President Trump’s announcement of a 90 day pause on tariffs, they liked that news to push higher. Any positive news about negotiations with Mexico would be great for corn. The April 10th crop report cut old crop stocks more than expected on increased exports by 100 million bushels, but a modest 25-million-bushel demand cut to US feed demand. US planting should accelerate this week as weather ...
