Global markets are trading slightly higher this morning despite record high unemployment data from the Eurozone.
Crops:
Crops are showing a lift this morning after two days of what Agrimoney.com is calling a “bloodbath” following Friday’s USDA report. Yesterday, corn prices declined the most in 24 years. Today’s price action is being attributed to better than expected U.S. crop export data released yesterday afternoon as well as the expectation that lower prices will attract industrial crop use producers.
The USDA released its Crop Progress Report for the first time this year. It showed that the condition of this year’s winter wheat had a 44% decline in quality over last year’s crop at this time.
Livestock:
Despite lower grain prices, livestock futures continue to show light volumes and what appears to be range-bound price movement. Speculators seem to be more concerned about the crop sector for the moment. See the difference in price action between live cattle and corn:
Live cattle futures
Corn futures
Disclaimer: This commentary is provided for information purposes and is not intended as advice.