AG MARKETING UPDATE: FEBRUARY 3 – 10
The numbers came in above trade estimates but were lower than the previous months’ report. The USDA kept the U.S. ending stocks at 1.540 billion bushels and lowered the world ending stocks to 302.22 million tonnes while reducing Brazil’s yield. Following the report, it came off the highs for the day before roaring back up to end the day. Thursday’s trade was interesting as halfway through trading, the markets did a 180-degree turn and fell lower on the day after being sharply higher across the board for a large intraday range. This was brought on by producers selling and speculative ...
The Leonard Lumber Report: Better Trading In Futures This Week
There was better trading in futures this week, but March opened the limit and locked. The back months had good volume, and July and Sept never hit the limit. At this point, you can exit your March shorts one way or another. That brings us to the next question: What does "life after limit" look like? If you take out the limit downs and the limit ups, we are sitting in the same area with the same dynamics. There is still good demand. Shipping out of the west is a mess, and trucking throughout North America is getting worse. And ...
AG MARKETING UPDATE: JANUARY 27 – FEBRUARY 3
Corn suffered small losses this week, going a different direction than beans. Private estimates of the South American crop are consistently lower than the USDA's last estimate, and we should see an adjustment on next week's USDA report. The Chinese's cancelation of 380,000 tonnes of corn was a drag on the market on Thursday. One cancelation is not the end of the world; it happens, but should we see a trend develop that could damper the bull sentiment right now. The driest areas of South America will continue to dry over the next couple of weeks, hurting their crop in ...
WHAT IT TAKES TO FEED THE WORLD
As of 2022, there are 7.9 billion people in the world, which is anticipated to hit 10 billion by 2050 Did you know that by 2050, the world is expected to feed almost 2 billion more people than we do today? As the global population continuously rises, a significant amount of food will need to be produced over the next 30 years. But before you get to overwhelmed with that thought, it's imperative to know that the need for more production creates opportunities. In fact, in 2020 alone, 19.7 million jobs were related to the agriculture and food sectors. We cover these ...
The Leonard Lumber Report: Looking for Tempered and Defined Market
We entered 2022 looking for a more tempered and defined market but instead have seen some of the most violent swings in lumber history. The market ran up $230 in 8 sessions and then fell $375 in 8 sessions. That is in an industry that thinks making $10 on a car is good. This $11 tick market has always been clearly defined, with extremes in the $20 range. What has changed? The economics of the industry. The producing side has left its historic role as customer service orientated and now turned into profit-only speculators. The buy-side contraction has turned into ...
