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 ...
LEONARD LUMBER REPORT: Futures ran up about 33% after the election. It has given back almost 25% of it since the tariff announcement
The Lumber Market: Futures ran up about 33% after the election. It has given back almost 25% of it since the tariff announcement. The futures market is staying within the parameters of the news. We would like the inclines and declines to be more subdued, but everything we hear is vague. That has the trade pushing buttons left and right. What's interesting is the commitment of trader's report that is compiled Tuesday to Tuesday. As of Tuesday, Wednesday was the crazy up day, the industry added 784 longs and liquidated a whopping 1684 shorts. The funds exited 1323 longs and ...
