Markets
Today’s commodity market news. Featuring expert analysis from Michelle Rook, Jerry Gulke and Pro Farmer Editors.
Oliver Sloup, Blue Line Futures, says corn saw continued technical selling and profit taking after the inability to take out chart resistance.
U.S. manufacturers are scrambling to secure critical parts and raw materials as new tariffs loom under Donald Trump’s presidency.
Randy Martinson, Martinson Ag, says soybeans are seeing profit taking on South American weather and despite another 7.3 million bu. of export business this morning,
The U.S. agriculture industry has started talks with Donald Trump’s transition team in a bid to advocate for the sector as the president-elect pledges tariffs and mass deportations.
CPC said, “Weak La Niña conditions would be less likely to result in conventional winter impacts, though predictable signals could still influence the forecast guidance.”
Bryan Doherty, Total Farm Marketing, says corn ended lower on a combination of profit taking and farmer selling after running into chart resistance.
Mark Schultz, NorthStar Commodity, says corn and soybeans are overbought and failed to get above resistance on the charts which is triggering profit taking. Live cattle make new highs for the move on sharply higher cash trade.
EPA’s investigation into used cooking oil (UCO) imports is directly related to biofuel tax incentives and compliance with the Renewable Fuel Standard (RFS) program.
The government’s Dietary Guidelines Advisory (DGA) Committee released its report, recommending reduced consumption of added sugars and red meat.
Alan Brugler of A&N Economics, LLC says corn started higher still digesting the bullish cut to ending stocks in the December WASDE but ran into chart resistance.
Kent Beadle, Paradigm Futures, says grains are extending gains from Tuesday on technical and fund buying as the markets. The markets are still digesting the bullish USDA report data for corn and even wheat.
For the ag sector, Brazil is positioned to be the big winner and France the big loser.
Darren Frye, Water Street Solutions, says grains close higher after the WASDE and USDA’s surprise cut in corn ending stocks by 200 million bushels.
Matt Bennett with AgMarket.Net says the agency shocked the market in the December WASDE by lowering ending stocks on corn 200 million bu. to 1.738 billion bu., with an increase in demand.
Data from the state weather forecasting agency last week indicated that over 37% of winter crops are in poor condition or have not sprouted due to low moisture levels.
Arlan Suderman, Chief Commodities Economist for Stone X, says corn and wheat ended higher on value buying after wheat hit contract lows last week. Soybeans continue to be under pressure with favorable weather in Brazil and basis levels below the U.S.
Brad Kooima, Kooima Kooima Varilek, says cattle are working in last week’s higher fed cash cattle trade. Grains are also mostly higher adding geopolitical risk premium and ahead of the WASDE.
The first full week of trading in December can be enlightening and Gulke Group president Jerry Gulke says this year is no exception, especially after the 2024 election. However, he thinks the bulk of the bearish news may be priced into the corn market.
The expansion of Canada’s Trans Mountain pipeline could play a pivotal role in mitigating the potential impacts of tariffs threatened by President-elect Donald Trump on imports from Canada and Mexico.
Bryan Doherty, Total Farm Marketing, says March corn sees a chart breakout Friday above $4.35 and posts a higher weekly close, pricing in strong demand and lower expected ending stocks in Tuesday’s WASDE.
Scott Varilek, Kooima Kooima Varilek, says cattle are trying to recover after a poor technical close yesterday with the help of strong cash. Corn broke above chart resistance and is being pushed by strong demand.
This delay in the 45Z program details is causing significant concern among producers and politicians alike.
International grain trading firms operating in Brazil will vote next week on changes that could weaken an agreement to not buy soybeans from deforested areas of the Amazon rainforest.
Dave Chatterton, Strategic Farm Marketing, says the agricultural markets saw risk off technical selling. The sentiment of the grain market in particular is bearish right now due to uncertainty tied to trade and overall policy in the new administration.
DuWayne Bosse of Bolt Marketing says soybeans are consolidating with products, despite a 30,000 MT sale of bean oil to South Korea.
Boozman emphasized the need for Congress to act swiftly, providing farmers with the predictability needed to secure financial stability.
John Heinberg, Total Farm Marketing, says corn failed mid-session with conflicting information about guidance being delayed for the 45Z Clean Fuel Production Credits, but it also hit chart resistance.
Brad Kooima, Kooima Kooima Varilek, says cattle recover Tuesday after a KS plant closure headline hurt the market. Grains see a technical bounce with a lower dollar.
U.S. processors crushed 215.8 million bu. of soybeans in October, smashing the previous record for any month.
Kevin Duling, KD Investors, says more tariff talk over the weekend from President-elect Trump, this time on the BRICS nations, had fund or managed money traders nervous again and pushed the dollar higher.