It was another ?disappointing day? for the grain markets.
Soybeans posted a new record short Wednesday, but nearly all markets recovered nicely. However, the soy complex took another turn for the worse on Thursday. Brian Grossman, market strategist with Zaner Ag Hedge, says market direction shifted downward during the day session.
?A lot of that was linked to a positive article with talk that we are much closer to a trade agreement (with) China. However, the excitement seems to have blown over,? Grossman said.
Soy meal posted a new contract low Thursday and soybeans closed down eight-and-a-half cents. The weekly Export Sales report did not provide any support to the depressed market.
?Soy meal was above our weekly target on shipments and sales, but below what we have been seeing. We have been seeing a fire pace of our export sales,? Grossman said. ?That could be indication South American soy meal is more competitive than ours, which given currencies is not a big question to ask. That problem is starting to run into us on the soy meal front as well, which is dragging the entire soy complex lower.?
Crush margins remain positive, but soybeans are outpacing product to the downside.
Grossman encourages producers who remain “unsure” about the current situation to get a hold of a marketing consultant, as there is not one broad solution for each operation.
“Every operation, situation is going to be different,” Grossman said. “The best thing to do is get in touch with somebody like myself, and lay out your cards – this is the situation, this is what you need. Then you can formulate some kind of plan.”
