Bullish Headlines, Bearish Markets?
A lot of positive news this week with the China trade deal and the soon-to-be-signed USMCA - both expected to be helpful for agricultural producers. Markets not responding accordingly - most of them were down on Thursday. Scott Shellady explains.
Shellady…”32 years in the business and I'll tell you this: you can look at the fundamentals and you can know the technicals, but sometimes we just have too many weak longs in the market expecting what maybe you were expecting (positive market response) . And if they don't get that outcome or there is no new buyers that come to the market, things kind of fall apart on them. And that's kind of what we're seeing here, right?
...We've got some decent bullish headlines. You have to feed the bull every day to continue with that. We're not seeing a new buying come to the market and we're kind of bouncing along here. It's kind of a lackluster trade, and that just tells me that we've got weak longs in the market. They need to see something happen now. They're not well-capitalized and if they don't get what they want, they sell.”
Chicago March Wheat futures down $0.08 to $5.65 ¼.
Kansas City Hard Red Winter Wheat down $0.11 ½ to $4.84 ½.
March Corn closed down $0.12 to $3.75 ½.
Portland prices for soft white wheat of ordinary protein unchanged ranging from $6.20 to $6.25.
Club Wheat of Ordinary Protein also unchanged $6.25 to $7.95
Dark Northern Spring wheat mixed. That market now bid $6.85 ¼ to $7.20 ¼ for 14% protein.
Live Cattle futures were down $0.47 ½ to $126.12 ½ on the February board. March Feeder Cattle were down $0.35 to $144.82 ½.
Class III milk was the only market in positive territory on Thursday up $0.22 to $17.30.