Markets
Today’s commodity market news. Featuring expert analysis from Michelle Rook, Jerry Gulke and Pro Farmer Editors.
Last year, prices rallied from January to May, and a repeat certainly is in the cards.
Overall, global pork imports and exports are predicted to decrease from 2021 levels, according to the latest outlook from Rabobank.
“You know, it is really clear that the Chinese haven’t met their commitment in Phase 1,” Bianchi said.
Belarus is working with other countries to sell its potash internationally.
Ukraine/Russia diplomatic solution reduced
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.
Dry weather in South America, a brewing U.S. acreage battle and global unrest all took grain prices higher for the week.
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 macro elements affecting ag prices are as dynamic as I have ever seen them.
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.
The “free” storage being advertised by grain buyers can also be called price later opportunities, delayed pricing or DP.
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. . .