US: Weather, exports driving factors in commodity markets

Rabobank: Feed costs will remain high throughout the year Animal feed costs are expected to remain high for the rest of the year, according to Rabobank’s latest North American Agribusiness Review. While soybean meal prices have been on a downward trend in recent weeks, Rabobank said elevated prices are expected to continue in the short term. Meanwhile, hot and dry weather could lead to lower feed demand if cattle and hogs are culled at a higher rate. Weather is also the main factor affecting the volatile corn market. “Like every year, it boils down to weather and yield, and this year is no exception. It is particularly true this year. Because we entered the growing season dry, timely rains are going to be critical for this crop’s development,” the report said. “We are clearly in a weather market. Every change in the weather forecast creates a market selloff or rally – buying and selling opportunities.” Along with weather, corn exports will be a major driver of corn prices, with ...