Thursday markets were mixed from the outside equities to the commodities. China made a historic purchase of corn at 1,937,000 Metric Tons for the 2020/2021 marketing year. Jeff Peterson with Heartland Farm Partners believes this shows that Chinese demand is strong and will likely continue barring issues between the worlds largest economies. However the trade is still focused on how big the US crop will likely be and is cautious to shake loose short positions.
Peterson also highlights how important currencies are currently to the market. The US Dollar index has continued to decline, but that is partly due to a quickly rising Euro. The US Dollar in comparison to emerging currencies like the Real and Ruble is still relatively strong. That means that the biggest competition to US ag commodities still has some competitiveness issues.
Hear the whole conversation here: