Rice and cattle are among the few bright spots in the commodity markets, while wheat, corn and soybeans continue to struggle. Martinson Ag Risk Management President Randy Martinson says the list of stronger markets is getting shorter. Rice futures reached new contract highs last week amid concerns about production and supplies. “Rice continues to have some really strong performance,” said Martinson. “A lot of that due to concerns about production and supply.” Martinson says rice strength would normally provide some support for wheat, but that hasn’t happened. Wheat prices remain under pressure amid speculation about a possible peace agreement in the Black Sea region, which could improve access to grain supplies. Livestock markets are another bright spot. Martinson expects live and feeder cattle futures to find support following Friday’s bullish USDA Cattle on Feed Report. On the bearish side, corn and soybeans continue to face seasonal harvest pressure. Martinson says fund liquidation is also weighing on all three major grain markets. Brazil’s presidential election is creating additional pressure for U.S. soybeans. President Luiz Inácio Lula da Silva’s reelection has raised concerns about a weaker Brazilian real, which could make Brazilian soybeans more competitive in global export markets. Click here for the full report.
