Rounding up in-depth weekly reviews on key ag commodities, transportation, fertilizer, energy and financial markets from the Farm Futures staff
Weekly Basis Review
Corn basis firms on tight farmer holding (4/16)
A few dry days in parts of the Corn Belt helped bring more farmers into their fields this week. But even if they had time to haul corn, few growers appeared inclined to open their bin doors. Low futures prices are forcing buyers to up their cash bids, firming basis.
Weekly Financial Review
Weak growth not a bad thing for Wall Street (4/15)
Why would forecasts for slower economic growth in the U.S. be a good thing? The slower outlook is indeed positive apparently if you’re an investor. For one, it maintains pressure of the Federal Reserve to hold off on interest rate hikes. For another it helps hold down inflation. With corporate earnings good, Wall Street sees potential for its good times to keep on rolling.
Weekly Energy Review
Crude oil rally drives diesel prices higher (4/15)
Farmers are the swing factor in demand for diesel. So when growers burn more in the spring and fall, prices tend to firm. That’s what’s happening to fuel costs again this spring. But so far this rally appears to be driven mostly by gains in crude oil, which rallied to new highs for 2015.
Weekly Fertilizer Review
Weaker wholesale costs don’t lower fertilizer bill (4/15)
Prices of some fertilizer products are down sharply on international markets. But those declines haven’t translated into lower costs at the retail level this spring, as farmers mull last-minute changes to applications.
Weekly Wheat Review
Wheat stands on a cliff (4/14)
The wheat market fights to hold winter lows, after a break below technical chart support was triggered by forecasts for rain over much of the hard red winter wheat crop. Any bounce may be limited, coming on a dry conditions for spring wheat on the northern Plains, and concerns about too much rain for soft red winter wheat.
Weekly Corn Review
Keep corn hopes modest (4/14)
Odds for a good spring rally are fading unless wet conditions delay planting significantly this year. That’s happened the past two seasons, when farmers planted less corn that estimated in USDA’s March Prospective Plantings report. But wet spring soils also make drought rallies less likely during the summer.
Weekly Soybean Review
Soybeans may cause heartburn (4/14)
Writing off the soybean market too early can be a dangerous thing. But with big supplies in the U.S. and around the world, it’s hard to make a case for prices to rally. There is one potential ace in the hole for soybeans however: ideas the 2014 crop was smaller than previously reported.
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