Corn Prices Drop AGAIN - Is a Summer Rally Still Possible??

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🌱📉 Soybean Futures—Soybean futures tumbled sharply on Thursday, with the Nov26 contract dropping nearly 26 cents to settle near $11.42/bu—its lowest point since mid-March. Favorable weather forecasts, weak crude oil prices, and lackluster Chinese demand all weighed on the market.

🌽📊 Corn & Wheat Futures — Corn futures slid 8 cents to close near $4.52/bu on the Dec26 contract, hitting its lowest level since late January. Wheat futures also finished lower, pressured by ample global supplies.

🌧️🗺️ USDA Drought Monitor—Hot and dry conditions across the Corn Belt worsened drought in Iowa, Minnesota, Wisconsin, northern Illinois, NW Indiana, and NE Missouri last week. Meanwhile, Kentucky saw improvement, and thunderstorms brought some relief to parts of the High Plains. 📄 See USDA's drought PDF linked below.

🌾🌏 China Wheat Quality Concerns—Heavy late-May rains caused an estimated 4.8–10mmt of wheat to sprout in China's key growing regions, rendering it unfit for milling and redirecting it to livestock feed. China may ramp up imports of higher-grade milling wheat to compensate, while persistent wet weather is also slowing Russia's spring wheat planting to its slowest pace since 2018.

📦🚢 US Export Sales—Corn export sales came in at 883,300mt for the week ending May 28, down 13% week-over-week and 32% below the prior four-week average, with Japan as the top buyer. Soybean sales totaled 276,900mt — down slightly week-over-week but up 24% from the four-week average, led by China, though China has yet to book any new-crop US soybeans.

🐄🪲 Cattle Futures & Screwworm—Cattle futures rallied sharply on Thursday despite confirmation of New World screwworm in the US, with live cattle gaining up to $4.80/cwt and most feeder cattle contracts hitting the new $10.75/cwt daily limit. USDA Secretary Brooke Rollins expressed confidence the case—the first in Texas since 1966—can be contained, though the risk of spread through wildlife remains a concern.

Transcript

Selloff Continues

SPEAKER_01 0:08

Morning, guys. It's Friday, June 5th, 5 26 a.m. Central Time. Grain markets are mixed this morning. Welcome back to Grain Markets and Other Stuff. This is the best grain market show to ever exist anywhere on planet Earth. I'm Joe. Mackenzie Johnston is my co-host. McKenzie, say good morning to the people.

SPEAKER_00 0:25

Good morning, everybody.

SPEAKER_01 0:26

Matt Bennett is our guest today. Matt, good morning. Good morning, Joe. Guys, we got more just great, fantastic news to start off this morning. Let's go.

SPEAKER_00 0:34

So soybean futures were sharply lower yesterday as the November 26th contract dropped nearly 26 cents to settle near 1142 per bushel, marking its lowest level since mid-March. The decline was driven by favorable weather forecasts and weakening crude oil prices. Futures were also pressured by a lack of Chinese demand. Corn futures also closed lower with the December 26th contract falling 8 cents to close near 452 per bushel, its lowest level since late January. Wheat futures ended the session lower as well, pressured by ample global supplies.

SPEAKER_01 1:09

All right, Matthew, this is just an absolute bloodbath in the corn market. December corn futures have lost 58 cents or 11.5% from the May high at 506.5 to the overnight low at 448. We've got rain in the forecast. What the hell is going on?

SPEAKER_02 1:25

Oh golly, yeah. I mean, it's a debacle. I mean, a variety of things you know are going on. I do think whenever US and China met and they said they're going to buy $17 billion worth of goods, some folks were kind of hoping, hey, right off the bat, we're going to see some Chinese purchases. Didn't see that. The market was, you know, clearly at a level that we hadn't seen sustained for the last three years. And so uh we've been at a fairly high level. And I just believe there's been a fair amount of money flow, first of all. Um, you know, you you see that uh obviously this Argentine crop keeps getting um boosted, if you will. I think they said it's maybe 64 this week was one of the estimates. And you know, it's just there's really nothing out there um that's earth-shattering, but it's uh a variety of all things together. Uh obviously taking this thing lower. I mean, it funds last week puked a bunch. I can't imagine how much they've puked at this point. But I I think the cotton report today is certainly gonna show um similar uh amounts sold as of Tuesday's close, but God only knows what they've sold uh you know Wednesday and Thursday, and then whatever we're gonna look at today.

SPEAKER_01 2:34

There's definitely been a ton of fund selling. We can't quantify it at this point. We can estimate it. Some of the private groups are estimating that the funds are still net long, like 100,000 contracts of corn. That position peaked in this cycle on May 4th at 345,000 contracts. So they've sold 245,000 contracts of corn in the last month, basically. And I think it's kind of like a selling begets selling type thing. It's a domino effect. They uh they see technical uh areas busted, support areas busted, and it's just sell, sell, sell. It turns into a momentum thing almost. Absolutely.

SPEAKER_02 3:11

I mean, nothing's held, you know. It's just and it's uh open air at this point. Uh in my opinion, it should catch in here somewhere. I mean, there's no doubt there's still question marks on acreage. Demand's been fantastic, we know that. But at the same time, you know, I mean, you guys, we gotta remember, uh, we know we're sitting on a fair amount of old corn. I mean, a two billion uh type handle going into fall. And so obviously uh crop condition reports weren't extravagantly great, uh, but they're good enough for the time being. And I think that the market is just in a position of, hey, things look good enough for now.

SPEAKER_01 3:46

We're gonna have enough corn to get by, and and they beat the thing to death. So the people watching the show, a lot of them want to know is a summer rally still possible? Can we still see these corn go back to five bucks in June or July on a weather event or some sort of other event? Let's just say pre-harvest. Can we see the can you return to those levels pre-harvest if you get the right news? Absolutely. I mean, there's no question.

SPEAKER_02 4:09

The thing is, when it's going down like this, it seems like all hope is lost. Now, one thing's for sure, the funds typically, whenever they get into a position, uh, they will defend it for a while. We saw that for a very short while as far as corn goes. If they lose interest in this corn market, I think it takes just a little bit more uh to turn the tide. But we talked about this on Wednesday. If China would step in and buy, for instance, obviously weather. I mean, yes, there's a forecasted rain event. Uh, I did one with uh Snodgrass there yesterday and learned a lot during it. But he was talking about the whole northern Illinois situation. Uh, you know, in that part of the world, it's dry as a bone. And he said that the forecast continues to try to bring moisture in, but clearly it's hard when you get that dry uh to get significant amount of coverage throughout the entire area. They should get some thunderstorms. He said, How much that verifies is obviously going to be a big question mark. But yeah, if weather turns, you know, and you take a couple million acres away, I'm not saying you will, but if you did, there's no doubt this market could turn around.

SPEAKER_01 5:12

Okay, there is rain on the radar across parts of northern Illinois and uh southern Wisconsin this morning. We'll get to that in a second. The soybean market, Matt, has joined the funeral procession uh the last couple of days. Nasty losses, no Chinese purchases of U.S. soybeans for new crop delivery. Uh, this looks not as ugly as corn, but it's getting there.

SPEAKER_02 5:33

Yeah, it does. I mean, yesterday was really the day for soybeans. I mean, soybeans were just kind of hanging in there. Uh yes, they'd fallen a little bit, but then yesterday you come in here in a one-time, you know, you're down like 35 cents. You're like, oh great, here we go. Uh, but uh you know, yesterday there was a couple of uh sources uh uh stating that you know China may not buy anything or start any sort of purchasing program until September. Uh that's something they did two years ago, and they still bought a ton of beans. But at the same time, Joe, I mean, uh, whenever I see something like that released, I start thinking, well, this thing is gonna get beat to death for a little bit so they can step in and start buying, you know, because if they've told someone they're not gonna buy yet, uh how many times have we seen some sort of story like that floated and then they turn around and buy after you've taken a 50 cent to a dollar bath? So yeah, bean market absolutely got fumbled yesterday relative to what they've done here lately. And no doubt it it had a totally different feel after yesterday's close.

SPEAKER_01 6:32

Wheat futures, ugly as well, just a long string of lower closes essentially. HRW futures for the July contract has this open gap at 609 and three-quarters. It seems almost inevitable that you probably go down and check out that area. Yeah, I would say so. No guarantees, but that's that would be the obvious stopping point.

SPEAKER_02 6:52

Right. And I mean, you look, and I don't know if you did a hard red. Is that this the hard red? So it's what 12 days in a row on July, isn't it? I mean, it's pretty ugly. Unbelievable uh drop. And you know, I've had a lot of question marks from from folks saying, hey, everybody knows this hard red crop is no good. Yeah, we got a little bit of rain, but for most people, they reported to me it's just too little, too late. I mean, gosh, they're on the cusp of harvest right now. And so what do you what what do you make out of this? It's like, well, the hard red crop in the US, everybody knows it. It's quantified. They knows they know that it's not a good crop. And the unfortunate reality, I mean, I feel for these guys. I've been in in uh shoes like that before when you've got a drought, you know, and and not everyone else does. But in the in the world scheme of things, the grand scheme of things, the hard red crop doesn't matter enough uh to stem the tide whenever it comes to wheat, because we're a small player, and it's just one of our three classes of wheat crops. So it's frustrating, uh, but absolutely it just doesn't turn the needle enough to be able to change the entire complex of the wheat market.

SPEAKER_01 7:59

Yeah. Uh the fact of the matter is U.S. wheat just got too expensive during that rally relative to global competition. You know, your big exporters, your Black Sea exporters, they never really got that expensive. So, like, we were going to essentially

Drought Monitor and Weather Forecast

SPEAKER_01 8:13

just choke off all export demand, and that's something that uh we really need despite lower supplies. Okay, let's go to weather. We'll start with the drought monitor.

SPEAKER_00 8:21

The Corn Belt experienced mostly hot and dry conditions last week, leading to worsening uh drought conditions across Iowa, Minnesota, and Wisconsin. Conditions also deteriorated in northern Illinois, northwest Indiana, and northeast Missouri. In contrast, a large portion of Kentucky saw conditions improve. Numerous thunderstorms brought rainfall to certain areas of the high plains, which caused drought conditions to improve in some areas. However, the region remains largely affected by widespread drought. When we look at the percentage of U.S. areas experiencing drought, corn country currently stands at 27%, soybeans 28%, winter wheat 67%, spring wheat 23%, and cattle country 57%.

SPEAKER_01 9:03

As I mentioned, Matt, there is some rain on the radar over parts of uh northern Illinois this morning. And what this amounts to ultimately, I don't know, also a good chunk of Iowa, northern Missouri. And then you got some rain across the uh Nebraska-Sout Dakota border. Um, over the last seven days, most of the rain's been confined to the northern and central plains, some of the um southern plains, and then like the far western cornbelt. But everything about the weather, I mean, you look at the forecast, it's just widespread cornbelt rain expected, except for maybe Ohio, and they were too wet, I think. So I just there's nothing bullish about this forecast.

SPEAKER_02 9:41

No, the forecast whatsoever, has no bullishness to it. I mean, the thing is that if you can get uh the month of June to recharge you enough uh to come into pollination, for instance, and and not be excessively worried, uh there's no question that it it sets you up for one heck of a cord crop. Now, the problem in northern Illinois is that obviously they've gotten dry enough that they're gonna need a fair amount of rain to kind of get caught up here, but uh rain begets rain typically. And so when you start getting some rain and the environments change enough for that to happen, uh then that certainly is gonna be a good factor for you. Yesterday evening, you know, I had to drive over uh to Des Moines and uh from Iowa City all the way to Des Moines, it was it was raining pretty good. I don't know how much rain they had through there, but I know that it was pretty consistent the whole way over. So uh that that system clearly has moved on to the east. And I would assume that uh, you know, if they can get a decent shot out of this, they've still got shots, I believe, all the way through next Tuesday.

SPEAKER_01 10:40

Our friends at Crop Profit do a very good job of quantifying the weather forecast based on Euromodel data. U.S. corn areas are expected to see 132% of normal rainfall over the next seven days and 98% of normal rainfall during the eight to 14 day periods. Nothing bullish about that. Uh, the weather is gonna be kind of heat wave-ish here over the next uh week, seven degrees above normal on average over U.S. corn areas. Any concern about heat or is this actually a good thing for some people? Not if you get rain.

SPEAKER_02 11:09

I'll tell you what, what an environment to get this corn crop going. I would say this you know, if I'm in northern Illinois, I would tell you, as long as I know that I'm gonna get some of this rain, absolutely bring on uh the dryness they've had here recently. I mean, I know people have been talking about it, but Joe, as a corn producer, the what you want is to plant the crop, have a dry period on the heels of it, get the crop rooted down, and then bless it with some rain. Uh now, if you turn around and you get hot, I mean, it's not going to be oppressively hot, but it's definitely going to heat up. But let's face it, we need some growing degree days. So, in all honesty, heat along with rain, that's exactly what you would want, especially up if you're in that part of the world. Now, in our part of the world, you know, we've had a little bit more rainfall. If we do get five inches over the next uh four to five, which is what some forecasts are calling over the next uh seven days, yeah, you're probably gonna have some of those ponds that some of us have replanted that you're just gonna have to say, hey, there's not gonna be anything there in the fall. But I've had some awfully good crops in the past where the ponds were empty, you know, and then everything around it was just uh flat out fantastic. So yeah, I don't this forecast has nothing bullish in it whatsoever, in my opinion.

SPEAKER_01 12:23

The uh heat uh is not it's not gonna stick around very long.

China/Russia Wheat Issues

SPEAKER_01 12:27

We're back to normal during the eight to 14 day period for the most part, so it's gonna be kind of short-lived. We've got uh some overseas wheat news.

SPEAKER_00 12:34

Right. So wheat quality losses in China could lead to increased imports. Heavy rainfall across key growing regions in late May is estimated to have caused between 4.8 and 10 million metric tons of wheat to sprout, a relatively modest volume. The sprouted the sprouted wheat will be unsuitable for milling into food-grade flour and will instead be diverted to livestock feed to offset these quality losses. China may increase imports of higher grade milling wheat, although such purchases typically occur with a lag. Meanwhile, persistent rainfall is slowing the planting of Russia's spring wheat crop, which has led to the slowest planting pace since 2018. If the wet conditions continue, the crop could uh be further impacted by potentially higher disease pressure later in the season.

SPEAKER_01 13:21

Okay, so we've got some problems in China, and China is the world's top wheat producer. They're also the top domestic consumer of wheat, accounting for 18% of all global consumption. Um, people were like like you said, Matt, earlier, people were talking, you know, it was it was like three or four weeks ago now about how China's gonna buy corn, maybe China's gonna buy some wheat. We haven't seen any of it. I mean, have you heard or or know that this weather problem is gonna result in in anything? Or if there are purchases, is it just political in nature?

SPEAKER_02 13:52

If there's purchases off of the U.S., it's likely gonna be political in nature. One of the questions I get, which I'm sure you've had as well, is if Argentine corn's cheaper and they've got such a big crop, why wouldn't they just buy crop uh corn off of Argentina? Yes, that makes sense. Well, why'd they buy freaking beans off like uh off the US last winter? You know, I mean, they bought them for political purposes. There was an agreement put in place that China and and people can argue about this all they want, but China felt like it was in their best interest to buy U.S. beans in order to get the deal that they wanted whenever it came to tariffs. And so, I mean, this is a the you trying to figure this all out is not the easiest thing to do because everyone else knows that hey, if Joe needs to buy something and the quality's uh similar, he's gonna go find a better bargain. I mean, that that's what you do in life, you know. But in this situation, you're talking about the world's you know largest consumer of goods, you know, cutting a deal essentially with China that if they go ahead and play ball with them, then they're gonna try to be nice to them on the backside. And that's what China's decided is they can they can make themselves more money selling goods at a lower tariff rate and buying beans that are over overly priced. Are they gonna have the same mentality on corn and wheat? Uh, I guess you gotta hope so. I hope that they step in and buy. I mean, they said $17 billion worth of goods, so they did fulfill their promise, if you will. That's all it was a handshake agreement on soybeans. So, you know, you've got to assume they're gonna do the same on this other.

SPEAKER_01 15:23

The uh Russia situation is a spring wheat situation, and the majority of what Russia grows and exports is a winter wheat crop. I don't think there's a ton of concern there as it relates to world wheat supply and demand. USDA says we're gonna be basically adequate in terms of the supply-demand balance. We're not looking for any sharp drawdown in um ending stocks or anything like that, but you've still got this whole um question mark surrounding the fertilizer situation in the Middle East conflict, and production could be lower than what the government has projected in corn wheat. I just don't think anybody knows yet.

SPEAKER_02 15:57

No, I don't think anybody knows yet either. I think the tough thing with wheat is you know, anybody in the world can grow wheat. I mean, they grow wheat on mountains and places in this world. And so you're always, you know, just a couple, three weeks away from wheat harvest somewhere, you know. And so uh, and the other thing is is, you know, if people look, stocks the usage on on wheat globally or in the US looks vastly different than what it does for corn and soybeans. I mean, you've always had much greater amounts of wheat sitting around, and and so getting a wheat shortage, if you will, uh you have to kind of keep in the back of your mind that it's gonna look different than what it does with corn. Whereas corn, you know, or soybeans, you get them down to five percent stocks use. I mean, add a zero to that on wheat, and that's where you typically have run in most of my career, you know, 50%, you know, as far as global. So uh it's pretty tough to get this in in that kind of a shortage. But uh, bottom line for wheat right now is there's just not really a great story in total uh to be able to drive this market higher. And like you said, it got too high, got a little bit rich, got overbought. And bottom line

Export Sales

SPEAKER_02 17:04

is uh if we didn't take advantage of it, it's absolutely frustrating. Uh, but that might be our one shot for a while. Export sales were out yesterday.

SPEAKER_00 17:12

U.S. corn export sales fell below pre-report expectations last week for the weekending May 28th. Net corn sales were reported at 45 million bushels. The print was down 13% from the previous week and down 32% from the prior four-week average. Japan was the largest buyer for the week. Net soybean sales were reported at 10 million bushels. The print was down 8% from the previous week, but up 24% from the prior four-week average. China was the largest buyer for the week. Wheat sales were distorted for the second straight week uh by year over, by year-end rollover, uh, with reductions totaling 24 million bushels. Meanwhile, net wheat sales for the 26-27 marketing year totaled 31 million bushels, well above the expectations.

SPEAKER_01 17:53

So, corn sales, the book is still fantastic. Weekly sales of old crop US corn off just a little bit. Um, we've had a big, big price decline now. So I wonder if if export business actually picks up.

SPEAKER_02 18:04

Yeah, I mean, you would you would think that it could spur some of that. But yes, we're still running vastly ahead of where we were supposed to be uh or where we were at, you know, for instance, a year ago, what the USDA is projecting is still lower, you know, than what the pace is. And so uh, you know, you'd think if some of that business does pick up, it could give you some sort of a stabilizing effect. But at the same time, corn demand has been a well-known fact for quite some time on the export front, you know, and I think it's uh old story, you know, to some fund traders. Is it there? Is it live and well? Yeah. I mean, you've got record world demand, record US demand. It's just it's a known commodity at this point.

SPEAKER_01 18:41

I think the question now in corn for exports is is the new crop situation. I think USDA is projecting a decline year over year in their initial projection. And I just I don't know if that's gonna be reality or not. It'd be a function of how big the crop is, I guess.

SPEAKER_02 18:54

I don't either. And I mean, you and I both know how the USDA works. They lowered production for this year. So what did they do? They lowered demand. And people say, well, that doesn't make any sense. Well, that's what they do, that's their protocol. So, you know, if they would uh come in here and said, Oh, actually, we're gonna end up with 100 million acres of corn this year at a trend line yield, they probably would have left exports the same, if not, maybe increase them a shade, just seeing how good that they are. But let's say they're 50 to 100 too low on old crop right now, which right now you can certainly make that case. So let's say you end up at 3.4, you know, instead of coming in at what the 3.1 or 315, whatever they're at, uh you could absolutely see another two to 300 million bushels of export demand for corn for new crop, which would completely change the balance. Yeah, that's at a time whenever you know acreage is lower. Now we don't know what it's gonna be versus March, uh, but you're gonna be lower than what you were a year ago, most likely, and it could be a fair amount lower. So things could tighten up a fair amount.

SPEAKER_01 19:49

I'll tell you what, if I'm a if I'm an importer and I'm looking at uh my new crop corn needs, I'm booking my corn out of the US like right now because absolutely it's uh it's cheapish and and you still got a whole growing season in front of you. Uh soybean export sales for old crop are terrible in the worst of the last 10 years. It's it's old news. Uh, what is more relevant right now is that China has bought nothing for new crop delivery. So you think you you alluded to this earlier, Matt. You think they could hit 25 million and not start for another couple months?

SPEAKER_02 20:18

Yeah, I mean, if you you and I I remember two years ago, you and I sat around and talked all the way to harvest almost, and good lord, they haven't freaking bought anything. You know, and then what they do, they just went on a buying spree, an absolute buying spree. Uh is that an ideal scenario? What's the market want to see right now? Well, they want to see them step in and buy some soybeans, you know, and then start this purchasing program. Uh, but they can certainly buy a lot of beans very quickly. I think the thing that frustrates everyone, uh, yes, they fulfilled the commitment uh this last winter, but you know, these are all just like uh fact sheets, gentlemen's quote unquote agreements. You know, it's there's there's nothing in writing, and I think that's what frustrates everyone. So there's never a guarantee. If they get their nose out of joint, who knows what they're gonna do? I don't think anything's a given. It's just to date, they've actually fulfilled their commitment. So if they do, yes, I think they could if they waited until closer to harvest, but just based upon what they did, for instance, back in 24.

SPEAKER_01 21:14

Okay, that the argument about we need to get it in writing or China didn't sign anything is the dumbest argument I've ever heard because when they did sign, actually sign the phase one trade deal, they didn't hit the commitments, and then more recently, the handshake deal of the 12 million metric tons, which had nothing in writing, they did fulfill all of it. So I don't know, like this argument about oh, China hasn't signed anything. Who cares? It doesn't matter. Did they are they gonna buy the beans or not? That's all that matters.

SPEAKER_02 21:41

The thing is, I definitely feel like the market is going to trade that. Okay. Uh if you look for phase one trade deal, for instance, a lot of people said we got nothing out of the phase one trade deal. Well, go back to the Chinese creative interests. It was incredible what they did. But I I mean, and I don't want to get political, but obviously you had administrators. administration change and and not all administrations look at all these things the same, right? And so clearly they weren't they didn't have their feet held to the fire that hey you're going to honor this trade agreement because they didn't set up the trade agreement originally. So it wasn't that important to them, in my opinion, is kind of the way that thing was looked at. But uh this what I'll tell you though, Joe, is that people are frustrated, you know, in my opinion, uh because there's just too many different things that that can happen here. I mean you've seen them in the past. Oh, we're gonna buy beans oh we're gonna we're gonna cancel that you know uh I've had that question a thousand times. How can they cancel that and then turn around and buy it off someone else because the contract allows it. It sucks and it's no fun and it certainly impacts our markets but I just think there's a lot of distrust there. You know are they going to actually fulfill their commitment or not?

SPEAKER_01 22:47

I mean I think China is not is cannot be trusted whether they sign something or not that's that's my theory. Uh hey quick footnote on wheat sales so there

Cattle Rally and Screwworm

SPEAKER_01 22:55

were net cancellations of old crop but uh new crop were net positive to the tune of 838000. Uh the cattle market went on a ride yesterday.

SPEAKER_00 23:03

Sure did cattle futures rallied yesterday despite the confirmation of New World screwworm in the U.S. uh reversing early losses to close sharply higher live live cattle uh posted gains of up to 480 while the majority of feeder cattle contracts reached their newly increased daily trading trading limit of 1075. Since the case was confirmed Wednesday evening no additional detections of screw worm have been reported according to Ag Secretary uh Rollins the USDA believes the case can be contained which is the first in Texas since 1966.

SPEAKER_02 23:36

However there is a significant uh risk that screw worm flies could spread through wildlife populations potentially leading to additional livestock cases what a deal how are you thinking about this screwworm thing Matt we thought maybe it'd be maybe we'd be down yesterday that was uh clearly not the case I mean this looks like more uh more like a sell the rumor uh by the fact type thing this time around now what I figured would happen you know is not what happened I figured that you would come in with some sort of a panic situation like we've seen in the past when you've had BSE or something like that uh you certainly saw the cattle market react uh super negatively but the the the thing that's different from that that to this situation is that the BSE was just it was just announced all of a sudden no one was expecting it. Okay so everyone was expecting the screw worm situation I I still maintain if you get some sort of an outbreak uh from a supply and demand standpoint what's that do? It limits your supply to an already limited supply situation. Now does that mean that we're gonna go back to highs I mean that's a tough road hoe for me uh but it certainly stabilized the market much more rapidly than uh I expected it to so I I do stand corrected I mean but at the same time uh the cattle thing I I don't know that you're gonna go back to old highs that's just my current stance on things.

SPEAKER_01 24:53

Mackenzie you told us probably weeks or months ago that this thing would be in the United States eventually and here it is.

SPEAKER_00 24:59

So I I don't think if you're like in the cattle industry or trading cattle or that's like your I don't think people are surprised by this were they no I I mean we knew it was going to get here especially with summer coming around I mean flies are gonna go everywhere you know and like I just mentioned like the wildlife situation now I have I I thoroughly think it's gonna spread a little bit further. It's just hard to contain we haven't been able to contain it down in Mexico so why are we now going to be able to contain it in Texas?

SPEAKER_01 25:27

Yeah it just it wasn't a I don't think it was a shock headline like Matt said the way the way the Mad Cow headlines had been in in the past. You know it was just it was kind of like something that maybe was inevitable. Outside mark it's not overly exciting today. Matt, thanks for joining us everybody have a wonderful weekend. We will be back on Monday