New crop beans are $11.60, and new crop corn is $4.50. ![]() The picture is the same for corn, with the exception that the retreat to the trend line – which held – was seven days. It holds for contracts of the current crop year and holds for contracts of the next harvest. That trend holds and holds across the contract spectrum. ![]() Soybeans showed a five-day retreat to the steepest trend line in January. Grains first: Corn and soybean contracts all show multiple and strong uptrends in place. What do the technicals say? I believe the technicals will reveal first to market watchers any slowing or stopping of the changes to feed costs. Even crude oil is participating with the March contract – the contract that was negative in 2020 – rallying from the low $40s to the mid-$50s.īullish moves for fed cattle are in the works, but those for feeder cattle and calves are far more limited. And permanent for cattle feeding cost of gains. In this setting, these increases are not temporary but rather permanent. ![]() And even with the substantial increases in corn and soybean futures prices for nearby contracts, the current corn basis across the Central and Southern Plains remains strong – the cash activity and price levels have followed the futures rally. Regardless, stocks are considerably tighter than what was anticipated as of last fall. This information will update us on the tightness of corn and soybean stocks and possible acreage relief with this crop year. The February World Agricultural Supply and Demand Estimates (WASDE) report was released this week, and the first look at USDA grain acreage forecasts will be offered at the Agricultural Outlook Forum at the end of next week. Higher fed cattle marketings to lift 2023 production
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