Grain markets were weaker yet again in today’s trade, taking corn prices back to where we were at the start of the month. Will grains be able to hold a rally in June?
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It’s gonna be all Oliver Sloup Blue Line futures in Chicago. Oliver, thanks for being on. All right, what’s your takeaway kind of some of the day for us?
Oh, well, the date and not not all that pretty obviously, this week hasn’t really been all that pretty well, that’s kind of the season that we’re in where we get heightened volatility. And if you zoom out and look at, you know, where we started the month, you know, we’re basically back to unchanged for that July corn contract. So we’ve been up we’ve been down. Now we’re turning the calendar over into June, which makes me a little bit nervous seasonally, we start to see some weakness creep into the market by mid June and with the balance sheet shaped up the way it is, I wouldn’t be surprised that be a little bit earlier this year. So not really pleased with the price action as of late. But as we know from history during this time of year, things can change pretty quickly. So I’ve been telling guys, you know, hope for the best, that’s fine, but prepare for the worst options are a great way to protect the downside and the grain markets while keeping that upside open. If you’d like to do so, how
concerned are you about no new crop being sales to China.
That has been a dark cloud over the soybean market really since the start of the year. And I’m surprised it’s kind of the beans have rallied as much as they did. On the last last push higher. And I also being a little bit nervous about looking towards the end of the year we have election we’re gonna have jawboning back and forth about trade wars and tariffs. So I wouldn’t be surprised to see that dark cloud continue to loom over soybeans here in the near future. And as mentioned with corn, I think it’s an opportunity to look at some downside protection here as we turn the calendar over into June. Yeah, because
the reason I say that is like we had that one card, you know, we’re playing cards, or one of them. One of the cards we had was we’ve just used short cover rally by funds, right. That’s one of the things one of the bullish cards, what other pattern to add short.
But what are the bullish cards we have in our hand here now, because it’s not really demand right now it could be down the road. And it’s almost like we have to hang our hat on whether or maybe it’s something that comes out of the June and a month report.
Yeah, it could be the end of the month report. And historically, that’s not a super friendly report either. So um, there’s really not a whole lot to really grasp onto here at this point. But as I’ve mentioned, things can change quickly. Maybe it’s just a broader commodity picture. We’ve seen commodity strengthen as of late grains have struggled to follow suit because they have their own fundamental headwinds by potentially if the outside markets Commodity wise continue to rally maybe that makes higher inputs in grains who really have no choice but to rally but that’s about all I can think of at the moment. Yeah, I
agree with you. We’re on the same page. That’s why I brought it up. Right. Thanks for that. Stay right there, though. We’re gonna go away. We’re gonna pay some bills. We’re gonna come back and talk more with Oliver Sloup, Blue Line futures in Chicago. We’ll be right back. Let’s bring him back in Oliver Sloup. He’s with blue line futures in Chicago. All right. Thanks for being on.
Yeah, well, volatility. You mentioned feeder cattle being in about a $4 range today. And that’s been really the theme since the start of the week. We saw a $4 range on Tuesday, yesterday and again today. So the roller coaster continues to press forward. Ultimately, I wouldn’t be surprised to see this setup or a little bit of a buy the dip opportunity. This is seasonally a strong time of year for the cattle markets. So with that said, there is a little bit of concern in the back of my mind that with this softer economic data that we’ve seen kind of trend as of late that that could be a potential headwind. So I’m optimistic. But I think the upside is probably a little bit limited here, especially if the economic data continues to show the trend softer as it has for the last several weeks now, especially for the consumer. I mean, that’s got to put a little bit of a warning shot to most folks out there because more and more of these companies that have been reporting have been saying this, the chief financial officers have been saying that they’re seeing that the consumer might be getting to a point where it’s tapped in we’re at now introducing reintroducing $5 meal deals or say, Burger King and McDonald’s that’s that’s a pretty big admission admission.
I agree that cracks are starting to show that’s for sure. And as I had mentioned, seasonally, this is a strong time of year grilling season is is often friendly to the beef complex, and I think a lot of people can maybe shrug that off the first couple of waves this summer, but I think if the economy does continue to slow it’s gonna be gonna be a tough, tough battle uphill for sure.
And then you throw in an election at the end of it and we all got something to talk about, that’s for sure. All right, appreciate you coming on. Great way to sum everything up Oliver Sloup. He’s with the lead futures in Chicago.