Tag: corn market

21 Aug 2023

AG MARKET UPDATE: AUGUST 4 – 21

Corn had a rough two weeks with the cool and wet weather that covered large areas of the US coming just in time on a stressed crop. The August 11 USDA Report came in with a 175.1 bu/acre US yield, slightly below trade estimates. This yield seems very reasonable with the early drought stress and the recent rains to help stabilize the crop. The scorching heat and dry weather coming to most of the US the next week+ will stress the crop but the areas that are no longer experiencing drought conditions (see drought charts below) are positioned to handle it. The ProFarmer crop tour is this week and will give insights into what to expect from this crop and give insights we do not get from the USDA. If the USDA updates the planted acres lower from 94 million in September that will be news the market has eyes on.

Via Barchart

Soybeans have held together well over the last couple of months with the low acreage number supporting it. The weather was not great for beans early on, but like corn, the last couple of weeks have been very beneficial and the heat over the next 10 days can cause some issues. The USDA updated their yield estimates to 50.9 bu/acre, below the trade estimates and previous report but also a reasonable number with how the growing season has gone so far. Bean demand appears to be increasing and if this continues into harvest, momentum behind beans could give it another push that corn seems to be missing. The ProFarmer crop tour will be the news this week along with the hot dry weather, an adjustment to acres down the road is a variable that can change the look of this crop.

Via Barchart

Equity Markets

The equity markets have struggled the last few weeks as tech stocks stopped pulling the markets higher and seasonal trends took over. Earnings season is almost over with only a few big names left to report. Inflation and the Fed will be the news moving forward as markets are still unsure what their next move is.

Via Barchart

Drought Monitor

The drought monitors below show the change in drought conditions over the last 2 weeks.

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].

 

04 Aug 2023

AG MARKET UPDATE: JULY 20 – AUGUST 4

As quickly as corn rallied to get back over $5.50, the rains and favorable forecasts for August led it back below $5 just as quickly. The rains in late July provided much needed moisture over much of the corn belt, but as you can see in the drought charts below, varying levels of drought conditions remain. The forecast has shifted drier for August but after a record hot July, August is forecasted to be cooler. Reports of how much damage the first half of summer did to this crop are all over the place, which usually means it is somewhere in the middle. A 180+ yield is probably off the table, but a 172 yield seems to be just as unlikely unless the forecasts change to hot and dry for a long stretch soon. Russia’s bombing of Ukrainian ports in Odesa and the Danube River continue as the markets seem to shrug off any new damage. Over the weekend any forecast changes, new developments in Ukraine or world news will determine what the trade does to start the week.

Via Barchart

Soybeans have a similar story to corn this week but were able to avoid the late June collapse that corn saw thanks to the low acreage number. StoneX estimate for bean yield this week was 50.5 bu/ac which would be a supportive number for beans, especially if the acreage number is accurate. China has begun showing up as frequent buyers in export reports helping the demand story that was questionable on world economic worries not too long ago. The lack of bullish news is good news for the bears as no news markets rarely tend to move higher. Weather in August will be important for this crop and next week’s USDA report will give us more information on US production.

Via Barchart

Recent News

Click HERE to listen to RCM Ag Services’ Jody Lawrence join AgriTalk a couple weeks ago to discuss the current market.

Wheat

Wheat followed corn and beans lower for similar reasons. The markets have shrugged off Russian aggression of late but will be watching over the weekend for any escalation.

Equity Markets

The equity markets suffered losses this week with a big down day on Wednesday when Fitch downgraded US debt to AA+ and earnings continue to roll in. The job market seems to be moderating as hiring was slightly weaker than the previous month. The markets are looking for numbers that will keep the economy and markets going while also giving the Fed the signal to stop raising rates. This is a fine line that can feel like walking on eggshells with a long-predicted recession still the worry of most investors.

Via Barchart

Drought Monitor

The drought monitors below show the change in drought conditions over the last 2 weeks.

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].

 

25 Jul 2023

Listen: Jody Lawrence recently joined Chip Flory on AgriTalk to discuss current markets

Recently RCM Ag Services’ director of research, Jody Lawrence, jumped on “AgriTalk with Chip Flory” after they both spoke at an event in Memphis for Helena Agribusiness. During the discussion Jody and Chip dive into the recent events in the commodities space hitting several topics including:

  • The war in Ukraine continuing to impact the world grain supply. The suspension of the export corridor and escalation of the war and its impact on markets.
  • Drought conditions in the US at the start of the year damaged the crop in many areas but how much? Is 177.5 bpa still too high?
  • The recent USDA Report numbers and did 94 million acres of corn really get planted?
  • Balance Sheets and the disconnect between them and what the cash market and basis tells us
  • And More

The audio is below to listen to parts of their discussion and get more insight into their thoughts on what to expect moving forward.

https://omny.fm/shows/market-rally/agritalk-7-18-23-jody-lawrence-1

https://omny.fm/shows/market-rally/agritalk-7-18-23-jody-lawrence-2

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].

21 Jul 2023

AG MARKET UPDATE: JULY 7 – 20

Corn has seen a strong rally after falling following the USDA Report last Wednesday. The USDA estimated the US crop to have a 177.6 bu/ac yield this year following the rough start to growing season with drought conditions over most growing areas. While the rains have been beneficial in providing relief, this crop needs a lot more rain in the form of soaking rains and not storms with straight line winds. If the hot and dry pattern returns expect to see prices move higher. Russia has threatened that they will treat any ship entering the now closed grain corridor as a military vessel has tensions in the Black Sea region high again. The longer this new standoff drags out the more support it will provide grains. The collapse of the USD and inconsistent weather can help support this move higher after a bearish USDA report depending on the future forecasts and technical trading.

Via Barchart

Soybeans have enjoyed a great run over the last month and half as soybeans got back over $14 this week. After a low acreage number and not an ideal start to the summer beans have had a great last 2 months. The forecast hot dry stretch coming up is expected to put more stress on this crop as we head into the end of July and start of August. With tightening world balance sheets it will be hard for funds to get over extended short but every weekend provides the opportunity for surprise rains and new market surprises.

Via Barchart

The big news of the week was Russia threatening all vessels that enter the region as military vessels, escalating the tensions and ending the grain corridor for the time being. Russia keeps attacking Odessa which will damage the remaining infrastructure and could present even more challenges if/when the grain deal resumes. The Russian ambassador to the US has said that Russia is not preparing to attack civilian ships in the Black Sea, though previously the Russian Defense Ministry announced that all ships traveling to Ukrainian Black Sea ports would be considered potential carriers of military cargo, and the southeastern and northwestern parts of the Black Sea’s international waters should be considered unsafe for navigation.

Via Barchart

Equity Markets

The equity markets continued their strength the past couple of weeks with CPI coming in slightly lower than expected (by 0.1%) at 3%. While inflation is still above the target of 2% the slow decrease over time is helping it come down while core inflation, 4.8%, follows the same pattern. The Fed decision at the end of the month is likely to result in a ¼ point rate hike as we head into earnings season next week. Tech stocks took their largest losses that we have seen recently on Wednesday as earnings have begun being posted.

Via Barchart

US Dollar

The US Dollar hit its lowest level in a year this week as the greenback fell below the 100 level. This should help ag exports be competitive on the world stage but the sharp decline from the 103-level last week was surprising.

Drought Monitor

The drought monitors below show the change in drought conditions over the last 2 weeks.

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].

07 Jul 2023

AG MARKET UPDATE: JUNE 23 – JULY 7

Corn fell over the last couple weeks following the USDA coming out with 94 million planted acres, well above the March prospective plantings report. On top of the report there were widespread rains across the US over the end of June and start of July. While the drought conditions remain in most areas this rain was able to provide relief in much needed areas to buy it some time for another good rain. With La Nina setting in the potential for more rain and cooler temperatures could be what we see moving forward but how much damage was caused in May and June will be hard for the market to see. The export market has not provided any help with the slow pace continuing during the summer. If the dryness continues and the rain did not provide enough relief, we could see prices move back up after we get the USDA projected yield update on Wednesday.

Via Barchart

Soybeans had the surprise of lower acres in the report with the USDA coming in at 83.5 million acres, a 4-million-acre shift from the March report. Soybeans got a big pop on this news after falling, like corn, when the chance of rain was added to the forecast for most areas. The pullback this week came as the rains helped this crop that was not in as needy a spot as corn was.  The soybean acreage number will help raise the floor of where this crop could have gone with strong yields, but the low number will be the focus as balance sheets tighten. Weather will be the driver moving forward after the USDA report on Wednesday.

Via Barchart

The report last week for wheat was boring compared to corn and soybeans with little changes made. All wheat acres were reported at 49.628 million, down only 227,000 from the prospective plantings report. While the numbers did not seem bearish overall the USDA trimmed abandonment from 32.6% to 30.5%. Stocks remain tight but the lack of demand with Russia dominating the world markets leaves the US exporters in a tough spot. The lack of US demand does not seem to be changing anytime soon so paying to store wheat, hoping to profit from any bullish change, could cost you more when you include interest you need to pay back on operating loans. If you are looking to profit in this scenario using cheap options to own back on paper would make more sense.

Via Barchart

Equity Markets

The equity markets have traded close to flat over the last two weeks trading higher then back lower. The jobs report came in hotter than expected again this week. The markets give the Fed almost a 90% chance of raising rates at the next meeting. The markets have been lead higher by several stocks as we get to the halfway point, the question moving forward will be will they continue to lead and is there a recession on the horizon.

Via Barchart

Drought Monitor

The drought monitors below show the change in drought conditions over the last 2 weeks.

 

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].

 

23 Jun 2023

AG MARKET UPDATE: JUNE 9 – 23

Welcome to the weather market we have been waiting for. The market skyrocketed higher as drought conditions set it across the US as growing is well on the way. The market ended the week with large losses as the chances of rain across a large area is expected over the weekend. While the market was quick to give up 40 cents on chances of rain whether or not that rain comes is still a question mark, let alone the amount needed is unlikely to happen. The US corn crop was rated at 55% good/excellent to start the week, very low for this time of year before we get into the heat of the summer. The actual rainfall amount seen over the weekend will be important, but continued rain in the coming weeks will be needed with minimal subsoil moisture currently helping this crop.

Via Barchart

Soybeans saw a similar rally to corn in the last couple weeks with the drought conditions helping the market higher then rain chances pulling them back. The chances of rain this weekend will help soybeans, like corn, but the soybean crop is not in full panic mode yet although it is in some places. The US crop was rated 54% good/excellent to start the holiday shortened week as the weather market is in full effect. One other piece of news this week was the US EPA adjusting the biofuel mandates for 2023-25. While they raised the blending requirements to 22.38 billion gallons by 2025 many were expecting/hoping for higher amounts to give soybeans another catalyst higher. While they increased the 2023 renewable volume obligation by 120 million gallons from the December proposal, they lowered the RVOs by 300+ million gallons for ’24 and ’25.

Via Barchart

Equity Markets

The equity markets saw losses this week after an impressive run over the last couple of months in tech. Recession fears are still widespread in the market as we are not out of the storm yet with inflation still well above the target levels. The Fed did not raise rates in their latest meeting as expected but could still raise them again in the future.

Via Barchart

Drought Monitor

The drought monitors below show the change in drought conditions over the last 2 weeks.

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].

 

09 Jun 2023

Ag Market Update: June USDA Report Overview

22/23 US Corn Stocks:  1.452 BBU (1.449 BBU Est)

22/23 World Corn Stocks:  297.60 MMT (297.66 MMT Est)

23/24 US Ending Stocks:  2.257 BBU (2.254 BBU Est)

23/24 World Ending Stocks: 314.00 MMT (313.40 MMT Est)

22/23 Brazil/ARG Corn Prod: 167.00 MMT (166.67 Est)

World corn stocks look to grow a lot year over year with expected economic slowdowns dragging on consumption. The USDA left production estimates unchanged, while this is not surprising for the June report, the weather will need to start helping or we should see a drop in next month’s report. The EU and GFS weather models continue to be inconsistent for the next two weeks. The USDA lowered Argentina’s production from last month but raised Brazil’s.

 

22/23 US Bean Stocks:  230 MBU (223 MBU Est)

22/23 World Bean Stocks:  101.30 MMT (100.55 MMT Est)

23/24 US Ending Stocks:  350 MBU (345 MBU Est)

23/24 World Ending Stocks:  123.30 MMT (121.99 MMT Est)

22/23 Brazil/ARG Bean Prod: 181.00 MMT (180.16 Est)

The USDA kept the US production the same while lowering exports, which leads to a big jump in US ending stocks. Crush margins should keep supporting beans, as weather is not a major factor, yet, to worry about. Like corn, the drop in Argentina’s bean crop was partially offset by Brazil’s gains.

 

22/23 US Wheat Stocks:  598 MBU (606 MBU Est)

22/23 World Wheat Stocks:  266.70 MMT (266.58 MMT Est)

23/24 US Wheat Stocks:  562 MBU (569 MBU Est)

23/24 World Ending Stocks:  270.70 MMT (264.65 MMT Est)

2023 US All Wheat Production:  1.665 MBU (1.672 MBU Est)

The USDA forecasted wheat world ending stocks to grow more than expected with higher stock in Russia, India Ukraine and the EU all revising higher. The US ending stocks were raised with a raise in US production as well. Wheat will continue to keep its eyes on the Black Sea, which as we have learned can be unpredictable.

 

Overview:

Business as usual with no big surprises in the June report as the USDA left US production estimates untouched. The USDA also left Chinese imports the same with 23 million tons or corn and 100 million tons of beans. The lack of any major news in the report was expected but the lack of any real bearish surprises was welcome. As it starts to heat up many areas will still be looking for rain, especially in the WCB that was lacking subsoil moisture to begin with. Forecasts will be the most watched thing moving forward as the inconsistencies in models does little to ameliorate any concerns.

 

December 2023 – Corn

November 2023 – Beans

July 2023 – Wheat

Via Barchart

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].

26 May 2023

AG MARKET UPDATE: MAY 15 – 26

Corn had its best 2 week stretch in quite a while. As you can see from the chart below this has been the first meaningful rally, we have seen in 2023. As corn planting was 81% complete to start the week, ahead of the average pace, the trade has started to look at the weather outlook as we head into June. A dry pattern has begun forming in the coming weeks as it begins to warm up across the corn belt. While the heat in June is not overly worrisome it will be important to keep an eye on it as a warm dry June, followed by a hot dry July, could be plenty to do some serious damage to the US crop. We are a long way from this becoming a reality but a few weeks of dry heat to start June could help this rally keep some momentum or at least not give back the recent gains. Exports continue to be disappointing, and the extension of the Black Sea grain corridor isn’t bullish, but as usual the focus will be on final planted acres and weather in the coming weeks.

Via Barchart

Soybeans can’t get any momentum as South American beans continue to be the preferred option in the world market. November futures made a new low this week before getting a modest bounce on Friday heading into the long weekend. As demand continues to struggle the USDA will likely continue to trim exports in the next report, which will add to ending stocks for 22/23. Beans were 66% planted, ahead of the average pace, as weather concerns won’t hit the soybean market just yet. Beans are lacking any bullish news as they wait for a spark but struggle to find where it will come from.

Via Barchart

Cotton had a volatile week as seen in the chart below. When these opportunities present themselves, you do not want to miss the opportunity to hedge your risk. Have a plan and be prepared if there is another 5-cent spike that could make a big difference in your bottom line and potentially a good spot to place a hedge. The 78-84 cent range of Dec 2023 cotton has been consistent with pops to the upside and dips back to the bottom. The world economic outlook and US weather will be the main drivers moving forward into the long weekend.

Via Barchart

Equity Markets

The equity markets continue their mixed run of late with the DJI continuing to struggle while the S&P and NASDAQ stocks see gains. NVIDIA was the big winner of the week as chips and AI have investors’ focus. While the jury is still out on Artificial Intelligence and what role it will play in the coming years, one thing is clear, investors don’t want to miss the boat even though we do not know if the boat is the Titanic or the USS Missouri.

Via Barchart

Drought Monitor

The drought monitor below shows the struggles in the weestern corn belt as the eastern corn belt is in good shape as planting wraps up.

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].

 

15 May 2023

AG MARKET UPDATE: APRIL 28 – MAY 15

The USDA Report on Friday did not give any bullish news. But the overall muted market reaction was good to see as the overall report did not offer much to help prices. The USDA had production and ending stocks above pre-report estimates with the main number of US yield an expected 181.5 bpa. The USDA did not change their April estimates for Argentina’s crop, which remains higher than the numbers from the Rosario Grain Exchange but did raise the production estimates for Brazil. The USDA raised ending stocks on expectations for lower exports which matches the theme in the export space of late. The US crop planting progress was 65% complete to start this week.

Via Barchart

Soybeans had a bad week, like corn, but did not have as bearish a response following the report as the numbers could have led to. The major numbers were in-line with pre-report estimates except for the ending stocks for similar reasons as corn, with lower exports and south American production. WASDE did not lower Argentina’s numbers for beans either. The world bean market needs to find a new demand angle to keep from being oversupplied if the US has a great growing year. The US soybean crop was seen as 49% planted to start the week.

Via Barchart

Wheat was the lone warm spot of the report with some numbers coming in below trade estimates. The 23/24 world wheat ending stocks came in well above the pre-report estimates at 264.3 MMT (259.5 MMT) consumption and exports are lower. Wheat got a strong bounce, with KC leading the way, and should give corn some help. The Black Sea corridor will remain the biggest issue for commodities as any stops or problems will be supportive for Wheat.

Via Barchart

Equity Markets

The equity markets were mixed this week with the Dow getting hit with losses, the S&P being relatively flat and the Nasdaq continuing higher. Tech continues higher after good earnings from the major companies and the market thinking the Fed is done raising rates and potentially lowering sooner. The markets are still waiting for a catalyst as it has been a story of the have and have nots as of late.

Via Barchart

Drought Monitor

The eastern corn belt has gotten plenty of moisture as planting has begun while the western corn belt in some areas getting lots of moisture over the weekend.

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].

28 Apr 2023

AG MARKET UPDATE: APRIL 21 – 28

The losing streak continued for corn this week after another week with no bullish news keeps hitting prices. With Brazil’s prices as low as they are due to record production, China cancelled a 233,000-tonne corn purchase this week. This is not a new strategy by China as they cancel purchases from the US once they know Brazil can meet their demand for cheaper. This could lead the USDA to lower export expectations for the year and we would not be surprised to see more cancelations. While all the news has been bad of late and the chart looks ugly, the bounce off the lows to end the week was helpful. The weather remains cool and wet across much of the corn belt for the next week but should warm up and dry out after that to allow for quick planting come mid May. Corn planting progress was as expected this week at 14% complete.

Via Barchart

Soybeans had had seven consecutive days lower before their bounce on Friday to end the week. Brazilian markets had imploded but now appear to be stabilized, but still priced far below the US price. Like corn, there have been some cancelations and slow down in purchases, which will likely make the USDA lower export predictions for beans as well. Bean planting was seen 9% complete to start the week which is slightly ahead of expectations. Corn and Beans are both battling lower prices in Brazil and a good start to planting while they wait on news to change the trade direction.

Via Barchart

Equity Markets

The equity markets got a bounce this week after several mega cap tech companies delivered strong earnings report. Next week’s reports don’t have as many big names but it does have Apple which may be the most important stock. GDP growth cooled for the 3rd straight quarter growing slightly over 1%, the drop of 1%+ quarter over quarter the last three will make Q2 growth important to see if that trend continues and we slip into negative growth, also known as recession territory.

Via Barchart

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].