Argentina
The proclamation authorizes an 80,000 metric ton increase in in-quota lean beef trimmings imports in 2026. Economists say retail beef prices are unlikely to drop without impacting producers.
Joe Kooima of Kooima Kooima Varilek says the cattle markets have gotten caught up in the outside market money flow but are also seeing some caution ahead of the USDA semi-annual cattle inventory report to be released Friday.
Grain markets were higher overnight and on the opening Thursday making multi-week highs and new highs for the move before failing. Ted Seifried with Zaner Ag Hedge says the asset reallocation in the outside markets spilled over into the ag markets.
Soybeans continued to rally on Thursday. Lane Akre, economist with Pro Farmer, says this isn’t just short covering.
Greg McBride with Allendale, Inc. says hot, dry weather is expected in much of Argentina and Southern Brazil in the next 10 days and it is hitting at the critical pod filling stage for some of the soybean crop.
Chuck Shelby of Risk Management Commodities says soybeans, corn and wheat were oversold and saw some corrective buying but there was also some risk on buying across the ag complex.
The U.S. Climate Prediction Center forecasts the weather pattern to persist for the next month or two, which is ideal for soybean reproductive stages, but the transition might impact the tail-end of the region’s growing season.
Jim McCormick with AgMarket.Net says the 125 million bu. cut to U.S. corn ending stocks was bullish as well as global corn carryout.