Since there are no markets on Friday, April 2, for Good Friday and the Easter weekend, AgweekTV's Michelle Rook and Randy Martinson of Martinson Ag Risk Management finished up their Agweek Market Wrap a day early this week.
But, even with four days, there still was plenty to talk about. High on the list were the blockbuster March 31 U.S. Department of Agriculture Prospective Plantings and Quarterly Stocks reports.
The Prospective Plantings report showed much lower than expected corn and soybean acres. So where did those acres go, Rook asked.
"That's the question," Martinson replied.
To watch previous episodes of the Agweek Market Wrap, click here.
He expects to see major adjustments with increases in acreage for the crops in the June Planted Acreage Estimates. But higher prices seem likely in the meantime, as the crops will need to "buy acreage" to make sure there is enough supply for demand.
Martinson said the Prospective Plantings report also "found" a million acres of winter wheat that wasn't anticipated. The reports were not positive for wheat, and he expects wheat to continue to be a follower to corn and soybeans.
Unlike the other crops, wheat does not need to buy acres.
"Producers should be pulling spring wheat acres away, going toward corn and soybeans," he said.
In livestock, hogs are maintaining their strength with strong export demand, much of which is going to China, which is grappling again with African Swine Fever.
"That market doesn't look like there's anything to slow it down," Rook said.
Cattle, she said, look undervalued. Boxed beef sales, however, have been "huge," which speaks to coming demand for cattle, she said.
Martinson continues to expect improvement in the cattle markets, particularly as "barbecue season, summer grilling season" heats up.
April 02, 2021 at 04:46AM
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Corn and and soybeans are still looking to buy acres - AG Week
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