Ag News

Ag Markets Pull Back Out Of Big Lows

(IABRN) — Market prices took a dive, after Chinese officials announced intentions to halt all United States grain purchases. Grain markets, on Thursday, finally found the strength to pull themselves out of big lows.

Grain markets pushed higher during the Thursday, day session. Brian Grossman, market strategist with Zaner Ag Hedge, says large commercial buying helped give the final push upwards.

“It looks like we are finding commercial buying at this level. Calendar spreads have been trying to push higher over the last few sessions and today, it seems like we’re getting everybody on the same page,” Grossman said. “We have commercial buying and I would assume some speculative buying as well, in order to get November soybeans up 16-cents.”

Grossman advises producers to “be ready” and “take advantage of opportunities.

“I know a lot of people have this five-dollar target in their mind, and that’s possible. Nothing is impossible. From a risk management standpoint, there’s a lot of opportunity here. At the very least, get some kind of floor underneath you,” Grossman said.

The U.S. Department of Agriculture (USDA will release its August World Agricultural Supply and Demand (WASDE) report Monday. Grossman reminds all, “Anything can happen once that report is out.”

“We have the big, looming WASDE report coming (out) Monday. The big question on that one, more so than any other year, is the resurveyed acreage,” Grossman said. “We’re going to get revised acreage numbers (and) a statistical yield number, but acres are going to be the big question – How much of a supply swing are we going to see here?”

Aside from acreage, traders will keep an eye on demand.

“Exports continue to struggle,” Grossman said. “Today’s export sales were not worth the paper they were printed on. This has been an ongoing issue, and with a stronger U.S. dollar and a higher priced corn market, there’s nothing keeping people from either holding back on purchases, or in some cases, going to South America.”

Original Article From Iowa Agribusiness Radio Network

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