Pro Farmer Analysis
Farmer sentiment dropped six points as the January Purdue University/CME Group Ag Economy Barometer declined to its second-lowest reading since July 2020.
Corn-for-ethanol use increased to 485.8 million bu. in December, according to USDA. . .
Crop Consultant Dr. Michael Cordonnier cut his Brazilian soybean crop estimate by 4 MMT to 130 MMT.
Consultant cuts South America soybean production estimate by 5 MMT.
Cotton futures extended last week’s late upturn to reach the highest levels in 10 1/2-years behind strength in crude oil and U.S. stocks, and optimism over demand.
Officials meet this week on Russia/Ukraine
USDA’s attaché in Argentina lowered its estimate for the country’s corn production and exports by 3 MMT each . . .
USDA will release its semi-annual Cattle inventory report for the U.S. after the close Monday, which may keep many traders sidelined. The report probably will reflect ongoing herd liquidation across the U.S. . .
Soybean price action recaps and 5-30-90 day outlooks.
Russia continues military preparations, de-escalation still possible
A group of Republican senators wrote to EPA Administrator Michael Regan to express concerns over the levels proposed for 2022 by the agency for the Renewable Fuel Standard (RFS) and the proposed rejection. . .
The European Commission increased its forecast for soft wheat, corn and . . .
Corn futures fell under corrective selling following yesterday’s close near a nine-month high, along with pressure from the U.S. dollar’s rally to 19-month highs, which also helped send wheat futures down sharply.
Russia/Ukraine diplomatic talks to continue
USDA will hold a general signup for the Conservation Reserve Program (CRP) Jan. 31-March 31 and a Grassland CRP signup April 4-May 13.
The U.S. registered a record trade deficit in goods of $101.0 billion in December, according to the U.S. Census Bureau.
Based on a Reuters story, IHS Markit expects U.S. farmers to plant less corn, soybean, spring wheat and cotton acres compared to its December forecasts.
Price action: Soybean futures led the soy complex higher, with nearby March bean futures surging 32 3/4 cents to $14.40, the highest in the contract’s lifetime.
Fed signals interest rate hikes starting ‘soon’
The International Monetary Fund (IMF) reduced Latin America and the Caribbean’s economic growth by 0.6 percentage points to 2.4%.
California Judge James P. Arguelles ruled Tuesday that enforcement of California’s proposition 12 will be delayed until 180 days after the final rules go into effect.
SRW wheat futures closed near a two-month high and HRW futures settled at the highest price in a month. . .
California judge delays prop 12 enforcement
Rising prices are hitting food supply chains and high fertilizer costs are weighing on farmers across the developing world, the Wall Street Journal reports.
The Supreme Court could issue a new decision outlining the scope of Clean Water Act jurisdiction by this summer.
Payouts initially are coming in April or May via the Wildfire and Hurricane Indemnity Program-Plus (WHIP+) program.
March cotton futures fell 37 points to 120.38 cents per pound, the contract’s lowest closing price since Jan. 14
Canadian pigs headed to the U.S. to be fed and slaughtered are getting stuck in Canada, while feed is stranded in the U.S. as new vaccine rules exacerbate a labor shortage for truckers and railroad employees.
While some areas of South America received some recent rains, any crop improvement was likely limited as moisture will be lost to evaporation. . .
USDA’s attaché in Brazil lowered its estimate for the country’s soybean exports & production compared to the Jan. World Agricultural Supply and Demand Estimates (WASDE) . . .