Grain Exchange – 3/24/2020

The markets are beginning to trade a little more independently from the equities which is a good first step. Everyone is Washington is working on stimulus packages to help US businesses get through this historic time. The Small Business Administration (less than 500 employees) has put together some great programs to help all of us get through this. These programs might include very low interest loans and credit/forbearance incentives to keep or even add employees.

Both cattle and hogs finished limit up ($3.00) yesterday with the strength expected to continue today. Panic buying by consumers and packing and processing logistic concerns drove cash cattle trade last week $10 higher than the previous week.

Corn prices made it through a choppy session with few changes Monday, with a positive round of export inspection data from USDA yesterday morning mostly undercut by emerging demand concerns coming from the struggling ethanol sector. May futures dipped 0.25 cents lower to $3.43 with July futures holding steady at $3.49.

Soybean prices continue to move higher in tandem with soymeal futures, fueled by an uptick in demand from the livestock sector. May futures jumped another 21.5 cents higher Monday, closing at $8.84, while July futures gained 20.75 cents to reach $8.85. Soybeans showed excellent gains yesterday on slow loading in South America and China soybean processors needing beans, and chatter about more interest from China. Less ethanol production means lower DDG availability equals more meal demand.

Wheat prices surged more than 4% higher Monday as a wave of panic buying of food staples spurred a round of technical buying today. May Chicago SRW futures gained 23 cents to $5.62 May. Egypt could import around 472.2 million bushels of wheat during the 2020/21 marketing year, according to the latest estimates from USDA-FAS. That’s a moderate uptick from last year, due to higher population growth and overall consumption.