Grain prices lower on macro risk-off mentality again.
Grain prices retreated overnight, with soybeans pressing to new calendar lows as macro markets headed lower overnight, while gold burst through $2000 overnight briefly for the first time since March 2022 before retreating into the 1980 range. Risk-off trading is again in vogue as UBS needs to purchase and rescue the beleaguered Credit Susie over the weekend after a $54 billion injection could still not contain the potential systemic risk. A cautious investment mentality continues globally.
Initial reports were that the Safe Grain Corridor auto-rolled for 120 days, which the UN/Turkey and Ukraine representatives reported. But confirmation appears to be in jeopardy, and it’s only extended for 60 days, according to Russia. More information is sought as confusion continues with Russia not making official statements on the automatic rollover.
Soaking rains are expected across the core of the Argentine agricultural belt Tuesday-Thursday with cumulative totals of 1-3” offered for Santa Fe, Entre Rios, and the entirety of Córdoba, which is 50% of the Argentine corn/soybean production. It’s too late for most crops, and will but it will help stabilize the crops planted in January.
Friday’s Cattle on Feed report was considered mostly neutral to trade expectations, with on feed at 96%, placed at 93% marketed at 95%. Cash trade was $1 lower last week at $164, while futures took heavy liquidation selling from index funds on the banking concerns. Major support for April live cattle is 160-161, with closes below that band predictive of concerns of a recession growing. Cattle numbers continue to decline into the third quarter for availability.