Red River Farm Network’s Randy Koenen noted at this week’s Agweek Market Wrap that the market has had a volatile week.
The volatility started with Monday’s startling WASDE report, which fell short of expectations for the upcoming soybean harvest and sent soybean prices sharply higher, according to Randy Martinson of Martinson Ag Risk Management. was followed by the first report of export sales in about four weeks, which was a disappointment in terms of corn sales. This refocused the market on the harvest and what it looked like.
However, economic concerns persisted as it got caught in the ups and downs movement. The consumer price index was higher than expected, leading to a stronger dollar and a weaker Dow.
“This also stimulated the market,” Martinson said.
Koenen noted that traders may be “taking the money off the table and sitting on the sidelines and seeing what happens.” Martinson said that was the case and that some of that money went to the stock market rather than commodities trading.
Now waiting for the first harvest, he said.
Meanwhile, crops continue to struggle in other parts of the world, including problems with shipments from the European Union due to low water levels and drought concerns in South America.
Martinson said wheat took the lead on Friday as US and global wheat stocks tightened. Concerned about continuing concerns about Ukraine’s crop production capacity. Markets need to buy winter wheat from the southern plains, Martinson said. Also, the wheat harvest in the northern Plains and Canada has been prolonged.
(Agweek Market Wrap is sponsored by Gateway Building Systems.)
