Cash Strategist 12/14/2022
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Published
12/12/2022
We are starting to see a change in market attitude that is impacting crop price discovery. For the past several months, the trade has been in a rationing mode as a result of tightening domestic and global commodity supplies.
The United States continues to see tight stocks-to-use on all three major grains, but the trade is becoming more comfortable with these levels because even though they are tight, they aren't receding. This is especially the case for soybeans, with a stocks-to-use of just 5%, but that level has held for several months now.
While the global commodity supply is still an issue and rationing is needed, it is becoming more of a local issue than a global one. South America is forecast to produce a soybean crop that is 21% greater than last year, which...
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