USA: Grain markets await direction that’s likely to come from election results

Published 2024년 11월 1일

Tridge summary

The agricultural market is experiencing steady to small gains despite minor losses earlier in the week. The election on Nov. 5 and the ongoing conflict between Israel and Iran are influencing market directions. Strong exports have slowed down due to complete harvests and smaller yields, with the USDA potentially lowering its expectations. Weather conditions are impacting the U.S. grains, with drought and a low river system for shipping, while South America is benefiting from abundant rains. The upcoming WASDE report and the expected quarter-percent interest rate drop from the Federal Reserve are anticipated with no major surprises. The cattle market experienced a technical reversal, with cash prices strong but the futures market expected to correct. Lean hogs are showing demand strength, and farmers are advised to put a floor under calves if not planning to market them soon due to high demand and low feed prices.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The week showed losses of a few cents during the week, but it appeared that the week would end with steady to small gains for the major commodities. Koenen indicated that the election on Tuesday, Nov. 5 is one newsworthy item that should give the markets some direction. Another possible mover is the continued conflict between Israel and Iran. Exports were fantastic last week and have slowed down this week. Martinson said there are two philosophies out there that are expected to continue to have influence in the grains moving into next week. One of them is that the U.S. is seeing tremendous export demand due to expectations that if Trump is reelected, his administration may bring back tariffs that could drastically impact exports. The other is that with harvest finishing, it’s becoming clear that there are smaller piles and smaller yields. USDA may have to lower its expectations. Koenen added that there is a two-sided weather story not helping the U.S. grains. The U.S. is suffering ...

Source: Prairie Grain Partners