USDA lowered its soybean production forecast, which caused a rally. However, a social media post from the President earlier in the week also shook the market.
Darin Newsom with Barchart says he is not paying much attention to outside noise.
“For people in agriculture to believe that any U.S. President can ‘urge China to change its policy or its trade practice’ is beyond ridiculous, but yet that’s where we were. That’s where we were all Monday session, and now we’ll see what happens. I mean, will sanity return to the market? Probably not.”
Newsom says for him, it all comes down to fundamentals, something he says has not seen much change.
Related Stories
Seasonal pricing strength is lining up with crop stress, giving wheat producers another weather-driven marketing window. Shaun Haney joins us to discuss concerns from ag bankers on farm profitability.
March brought better prices for several commodities, but rising fuel and feed costs kept margins under pressure.
Corn and cotton gave the strongest signals this week, while soybean demand remained softer than in the previous report.
Ethanol demand held together last week, but lower production and thinner stocks put more focus on export strength. Production capacity is also strengthening over time and benefiting soybean farmers.
The farm bill is still moving, but the toughest amendment fights were pushed into today’s session. ASA President Scott Metzger joins us to discuss the risks of tariff actions on soybean exports, concerns over trade policy and production costs, and the importance of Farm Bill updates.
Higher biofuel mandates boost long-term crop demand, but a tighter D4 market may pressure biofuel feedstocks and pose new soybean oil demand risks.
