Markets traded much better today for everyone not attached to energy. 30 year treasuries sold off 8 handles since yesterday at this time, closing near lows. US equity markets responded in kind rallying nearly 1000 in the DOW, breaking a 4 day streak where new lows were made as yesterday’s lows held. Energies sadly did not, April crude expired options today in the 27’s. This is typical of an expiring contract after a big move. Ethanol plants are closing, bringing basis with it. Farmers who need to sell between now and the end of the month are kind of trapped here.
Another factor is the potential closing of the (maybe closed by the time you read this) Mexican border. Box beef Cattle imports will dry up in Texas, as will labor. Mexico is a big buyer of US corn. I would risk being a contrarian here though. There has not been a lot of money lost over the last few years buying the second delivery out contract below 350, you can buy July there now.
I imagine cattle is going to scream tomorrow. I hear light calves are impossible to find in East Texas right now, meanwhile box beef was up another 10 dollars today. Get ready for a wild couple of weeks in the meat casino.
This isn’t official, but I am hearing Chicago will close over the weekend. The only places open will be grocery stores and drug stores. I think the public is beginning to come to grasp with the realities of the next two weeks. Until tomorrow…
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