AG MARKET UPDATE: NOVEMBER 14 – DECEMBER 9
Corn has been trading sideways since the end of October and nothing from today’s USDA Report gives it reason to change course. The main news for corn has been the lack of news. Corn did dip 20 cents in late November but bounced back to the middle of the range it has been in around $4.45. In today’s USDA report they kept US production the same while raising the export forecast by 125 million bushels, lowering US ending stocks to 2.029 billion bushels. The global stocks number was also revised lower with production cuts to other countries, including Ukraine. While ...
LEONARD LUMBER REPORT: Light at the end of the tunnel
Recap: Light at the end of the tunnel. After 14 sessions in the same range, the bleeding may have slowed for now. The longer the market goes without a buy, the closer it gets to one. This year, each buy was triggered by some type of announcement. For the remainder, the buy side picked off deals. Last week, January futures were only down $4.50 after experiencing a $27.50 range for the week. During that period, open interest increased to 10,500. Interestingly, the CFTC report is gradually catching up, showing a rise in fund shorts on October 28. My belief all ...
LEONARD LUMBER REPORT: The cash market remains weak
Recap: The cash market remains weak. There's no arguing that most items hold little to no value. It’s a tough environment, but for the first time this year, the issue is more about logistics than demand. Demand is currently steady for this time of year, but mills are in a phase where they need to clear out wood. Historically, the trade would step in, buy their first quarter needs, and store it outside to freeze. This year, the problem is that the trade has been very proactive in maintaining high inventories due to macroeconomic risks. Futures led the decline lower ...
The Ogallala Aquifer Crisis: How Farmers Are Adapting to America’s Depleting Water Supply
If you farm anywhere across the Great Plains, chances are your operation depends on the Ogallala Aquifer, even if you don’t think about it every day. This massive underground water source stretches from South Dakota to Texas, covering about 174,000 square miles and providing close to 95% of the groundwater used for irrigation in the region (USGS). For decades, the Ogallala has quietly powered American agriculture, keeping crops like corn, soybeans, wheat, and cotton alive through long, dry summers. But this critical aquifer is shrinking fast. Decades of drought, extreme heat, and overuse have drained it faster than it can ...
LEONARD LUMBER REPORT: This market remains challenging
Recap: This market remains challenging. Last week, futures hit new lows almost every day, with all focus on the daily EFP deals. Most of the cash trades occurred at one mill, forcing the others to work hard to find value. This type of trade signals a bear market that is likely to continue. Throughout the year, the market has rallied because of the duties and tariffs, but without an increase in demand. Supply is tightening, but not at a pace to boost prices. We are waiting for signs of that scarcity. While we wait, there's a large gap between the ...
