Tag: corn

  • April 2021 Market Letter

    | | Agriculture

    Commentary provided by Chad Burlet of Third Street AG Investments April had the largest one month rally of corn futures ever. Considering the 162 year history of corn futures, that is no small milestone. May Corn futures rallied $1.75¾ (31.1%) this month. In the process the front month soybean/corn ratio moved from 2.55 to 2.12 and May Corn futures moved to 42 cents over May Kansas City Wheat futures. Corn was driven by the dual engines of Chinese imports and a Brazilian drought. Despite that record move, and a fifty cent rally in the May-July calendar spread, there was no evidence the … Read more April 2021 Market Letter
  • Incredible Velocity Movement Between KC Wheat and Chicago Corn

    | | Agriculture

    Commentary provided by Chad Burlet of Third Street AG Investments As always, the month of March and the first quarter ended with the USDA’s release of their March 1 stocks report and their spring planting intentions report. These reports often have the potential to dramatically disrupt conventional wisdom and today’s report did not disappoint. For the past several years the stocks numbers have provided the biggest surprise, but today it was the acreage estimates that rocked the market. Both corn and soybeans came in well below the average of the analysts’ estimates. An overwhelming majority expected the two major row crops to … Read more Incredible Velocity Movement Between KC Wheat and Chicago Corn
  • Third Street AG July Commentary

    | | Agriculture

    U.S. farmers planted the final eight million acres of corn and soybeans in July. While that is a record and clearly the lead story for the agricultural markets, it was also the lead story in May and June. As most of the U.S. experienced better than expected weather in July, the markets appeared to grow weary of the “Record Slow Planting” story as the month went on. The futures markets for corn, wheat and soybeans all followed the same path: putting in their highs mid-month and then closing the month on their lows. All three markets were helped higher by the bullish wheat surprise in the July 11th WASDE report. The USDA cut their production estimate for our five major exporting competitors by a combined 10 million metric tons (MMT). Chicago wheat futures quickly rallied 25 cents and the other markets followed … Read more Third Street AG July Commentary
  • Kottke Commodities – U.S. Crops, World Demand Both Probable Records

    | | Grains

    July is the make-or-break month for U.S. corn, as well as immediately ahead of the counterpart period for soybeans. After burgeoning world demand stripped the big South American soybean crop bare in only five months, and Brazil’s corn production shrank, the consequences of a merely modest problem in the U.S. harvest would have been extremely serious. Widespread publicity of “La Nina,” an unusual eastward shift of warm water in the Pacific Ocean associated with poor growing conditions inNorth America, had the world food market particularly on edge. Prices of both corn and soybeans rose sharply in June in apprehension of widely-forecast hot and dry weather during the crucial months to come … Read more Kottke Commodities – U.S. Crops, World Demand Both Probable Records