- Key technical points on the corn & soybeans
- Who will be the next big bean buyer?
- Funds are they going to be long?
- WASDE on Friday…how does that effect livestock?
- Feeder cattle index has had a history of putting in a top in the beginning of October
- What should we do with the calves? Do we hold & wait?
- Cattle have been stuck in a range-does that make a boring trade?
- Boxed beef is the low being put in?
- COVID cases picking up does that make livestock nervous?
Thursday brought about another strong day of gains in the grain market. Soybeans continue to hold well over the $10 mark. Looking at a continuous chart that puts soybeans back towards highs not seen since early 2018 before the US China trade war kicked off. Kyle Bumsted with Allendale Inc. believes this now give farmers a unique opportunity to go back and visit their marketing strategy. 2019 has been a year that farmers have seen plenty of government payments, but now the market seems to be giving opportunity to market at a profitable level.
Bumsted also gives strong insight into why the feeder cattle corn spread may be nearing it’s useful end. Rather feeders are looking at the cash difference between the fats getting on the truck and the lightweights coming off the truck. Finally there is the lean hog market that really caught fire on Thursday. Could it be starting to get top heavy or is there more room to go higher?
You can hear all of Bumstead’s comments here: