Grains took a beating last week. It was a fire sale of corn, soybeans, and wheat. The market conditions have really put pressure on this year’s crop, and there are still acres left to plant.
We talk about the “perfect storm” and what it takes to drive a market higher or lower. Greg McBride of Allendale joined our Opening Market Podcast today, and he talks about what is facing the markets. However, he also said that you can’t go completely negative on a crop that isn’t even completely planted yet.
Weather is going to be the biggest concern this year. Unless something changes, the La Niña vs El Niño dynamic will set the pace this year. McBride says, there are similarities to the volatile weather markets of 2012. That doesn’t mean that we are going to see the same thing happen. It just means we are setting up for weather to play that big of a role in this marketplace.
As for livestock, McBride talks about the cattle markets that have had a slight scare thrown at them. There was a case of atypical BSE or Mad Cow Disease found in a South Carolina slaughter plant last week. The animal was tied to a Tennessee herd. The animal never made it to the food chain and doesn’t seem to have posed a risk to herd health. But USDA APHIS is continuing its investigation with the help of vets in both states.
On Hogs it’s just been a rough year, and it is getting increasingly difficult for producers, even those who feed their own grains to their animals. It is getting tougher to meet their breakeven threshold. And with the grilling season really hitting the throttle this weekend, this economy is making all the markets nervous.
You can hear our complete discussion on today’s Opening Market Podcast.