U.S. Department of Agriculture
Record corn exports are tightening stocks and lifting prices, but long-term strength depends on expanding domestic demand. Could year-round E15 overcome legislative hurdles in Washington and change the market trajectory?
The bridge payment announcement coincides with the busiest time of year with higher volumes of land sales; 40% or greater of annual volumes occur in the fourth quarter for some ag real estate companies.
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.
Brian Grete with Commstock Investments says he was a bit surprised by how aggressive USDA was in raising corn exports to 3.2 billion bu. which is a record.
China’s pledge to buy 12 MMT of U.S. soybeans is facing questions over timing, storage capacity and price competitiveness, leaving markets uncertain whether the full promise can be met before year-end.
USDA says anticipated trade aid could be announced the first week of December, but ag economists are split on whether payments would provide relief or worsen lingering risks such as high input costs and market distortions.
USDA Under Secretary Richard Fordyce says USDA’s new phase of the Supplemental Disaster Relief Program expands eligibility, requires in-person enrollment and targets losses from the 2023 and 2024 weather disasters.
Grains futures saw sharp losses on Wednesday on profit taking according to Rich Nelson with Allendale, Inc. However, there were several other factors at play.
Kevin Duling with KD Investors says the additional six cargoes of soybeans sold to China were part of the rumored business earlier in the week and have already been priced into the market.
Brad Kooima with Kooima Kooima Varilek says the fear of Brazilian beef tariffs being lowered was part of the selloff in the cattle futures last week. However, Brazil tariffs are still at 66.4% so he says it was already priced into the market.