[ad_1]
Markets ended the week better, but it was a rough ride to get there, explained Randy Martinson of Martinson Ag Risk Management, during the Agweek Market Wrap on Friday, April 28, with Don Wick of the Red River Farm Network.
Martinson described the wheat market as having a tough week with heavy selling. That involves drought, the
Black Sea Grain deal
and poor exports.
“Part of it is from the weather forecast calling for better conditions,” Martinson said. He added that some cancellations from China added some hurt. The southern Plains received their first measurable rain in months and warming weather means that farmers up north will soon be hitting the fields.
“It all was just too much for the market to handle,” Martinson said.
Martinson explained that Brazil has taken over the corn and soybean market with exports to China. Brazil has a big crop and little storage, so they are moving crop hard.
“That’s kind of what stung our soybean and our corn markets this week,” Martinson said.
Wick pointed out the big news of the day that the EPA administrator granted
a waiver for E15 for summer use
nationwide. They allowed a waiver last year, as well.
“It was generally positive news, and it did help the market a little bit for the old crop. The new crop continues to struggle a little bit,” Martinson said. He added that old crop continues to sit at tight supplies, but exports will be limited for a while with Brazil leading that charge.
With the conversation shifting to the
local forecast
, attitudes have improved as it appears that farmers may be planting in mid-May rather than the third week or later as it was starting to appear.
“And that certainly is encouraging for producers,” Martinson said. He expects to still see
prevented planting acres
, but that it will be fewer than last year.
Wick brought up the talk of a quarter-point interest rate increase and asked Martinson what that would do to the markets.
Martinson said that it appears what the Federal Reserve is doing is working to reduce inflation. He was hopeful they would not see more than the quarter-point increase.
That rising rate has an impact on the consumer. One area in particular is the beef market. Martinson said that consumers are not yet seeing the big increase in prices but he expects that as the demand continues, and as barbecue season sets in, those prices should be rising.
“I do think this market is kind of stagnating out right now as we are trying to figure out if the consumer is willing to pay that little higher price at the grocery store,” Martinson said.
“I don’t know about you, but I’m ready to get in front of the grill,” Wick said of the upcoming warm weather. Martinson agreed.
(The Agweek Market Wrap is sponsored by Gateway Building Systems.)
Michael Johnson is the news editor for Agweek. He lives in rural Deer Creek, Minn., where he is starting to homestead with his two children and wife.
You can reach Michael at mjohnson@agweek.com or 218-640-2312.
[ad_2]
Source link