Latest Grain and Livestock Market Action is Hard to Believe
The best way to describe last week's grain market action, disappointing, frustrating, hard to believe? Commodity Broker Gordy Kralovetz from Chiodo Commodities said he has been in the commodity broker business since the 1980s and has never seen market action like this. The USDA has said corn and soybean stocks for this season are very tight and in the case of beans will run out before harvest this fall. Gordy has talked to some of "his livestock guys" and they cannot book any soybean meal for August.
Old crop carryover may be enough to barely get by until harvest but he has also heard many ethanol plants are only covered into August. It is still a long time until corn will be available this fall. So, why are corn and beans prices lower now than early last summer before we were concerned by the drought here in Minnesota? Is there a foreign government controlling a hedge fund that is doing all the selling to keep a lid on prices? Have the commercials just decided they will do nothing until we get the new crop?
Gordy said it is hard to know exactly what is going on but it just does not "add up" given the weather and how tight grain stocks are. Click play on the player above and listen to Gordy talk about the grain and livestock market action last week.