Selling Rallies: Current Ag Market Trends
Bryan Irey is regional manager at Crossroads CO-Op and is a grain market analyst. He talks about the latest general market trends.
“The overwhelming trend has been here over the last couple of months, is to sell rallies, whether it’s in wheat, corn, or soybeans. We just have worked ourselves lower in all three markets. And really, that is something that started about the first of March, when the tariff talks came around and kind of blindsided the markets. I think there’s a lot of reconciliation that the USDA is going to have to do with the corn balance sheet here before the marketing year.”
With the marketing year ending in August, earlier yield cuts in January were already being felt, leading to a 75 million bushel adjustment in the most recent world agricultural supply and demand estimates balance sheet. Irey says there will most likely be another adjustment.
“The market feels like there’s more corn around than that. It is kind of magnified by the fact that cattle numbers are lower due to the New World screwworm issue, not allowing Mexican cattle to get to us feedlots, and the US cow herd is just smaller. The availability of domestic feeders is down. And I think there’s going to be some some gyrations from the USDA in these balance sheets, especially corn moving forward. And I don’t think they’re going to be positive for producers as we head into late September and early October.”
Bryan Irey, with Crossroads CO-Op.