Welcome into installment of Market Plus.

Ted Seifried is still wi Ted, we had to talk about cattle in the main program.

# I didn't want to neglect hogs.

Only only a 30 cent loss # makes it seem palatable.

Yeah.

Relatively speaking.

# There.

Still, you mentioned it.

You kind of teased that # during the discussion about hogs because of China.

Do you see a positive next couple of weeks in hogs?

# I see the potential for Chinese business coming in # for buying our pork a little bit down the line.

# Right now, you're not going to see that # because they've go for whatever reason.

Now we can a But I mean, look at their crush margins kind of falling apart # that I think is telling us something # there might be no t going to use the a w going on with their hog herd at the moment, wh ich again, they've.

Used the word, I believe.

# Yeah.

Yes.

But doesn't mean that they will # say how widespread and so on.

Any who.

# That might open the door for more of our pork exports # down the line.

But at the moment # you've got a lot o So there's a lot of cheap pork up front.

So looking further on down the line, # there is some optimism there.

ha d a nice bounce off the lows in front month of pork as I think you do have that growing concern of a recession # as we head into the fall and winter month months.

# I think there's a lot of speculative traders, funds # that are feeling like, hey, cheap pork might be a nice # alternative to high priced beef.

We might see # a healthy uptick in demand.

So I think there's some of # that speculative trade coming in from a recessionary trade.

# And ultimately, I really do feel like pork had gotten # or hogs had gotten just too cheap.

# And that, you know, we had been what I'd call fair value for some time.

# Let's get to a few of the questions # that came in f I appreciate it.

Let's start wi who asked us on X the following question.

# Last years basis levels seem to reach new levels.

# Basis seems to be tightening even with some harvest # activities wrapping up.

Will the store # and ignore, capitalize or will it be the earlier # marketers?

Mm hmm.

# Well, the earlier marketers are few and far between.

Yo u're having a lot of this stored # ignore activity happening righ In fact, you go back to the first # September 1st quarter, the grain which is old crop still, but we had 19% highe storage than the previous year.

At the end of our last marketing # year, 16% higher in soybeans.

Nobody # wants to sell at these prices because we remember the prices # that we've had for the last few years, # the prices that we got to or even the nice balance Soybeans are the ones that are still up # towards the higher end of the ran And the reason f concerns in Brazil.

But keep in mind # that Brazil crop is 53% planted.

Basically, you've got a lot of people telling you that that Brazilian crop is dead, # even though it's only about halfway planted.

# You can't really kill a bean crop in # what would be their May timeframe.

# The concern is that had never rains again in Brazil, # but it probably will.

And when tha a lot of the gains that you've had in soybeans # could vanish very quickly, especially after the USDA # increased the carryover from 220 to 245 today.

# So all those things being considered # beans, you really have to be looking at marketing, # I'd say here and now.

Corn, # you know, you're you're standing on the edge of t Right?

And we're barely holding on.

# Although in the last two weeks we've had new # low, new low closes, I can't say contract low closes # because December contracts trade forever.

Right.

# We decided we'd start trading December contracts # four years out.

So this December corn cont three times in the last six trade # sessions has put it in a new, new low close # since September of 2021.

More than two years.

# That's telling you something.

I mean, we're not getting # a decent bounce off of this low.

We keep probing at it.

We keep pushing at it.

We got a report that was, # you know, we could have used a more bullish number.

# More crop.

Didn't happen.