Wheat
While it’s unclear how Congress will push through the Farm Assistance and Revenue Mitigation Act, it’s likely going to be via the Continuing Resolution. Depending on how payments are calculated, farmers could receive $101 per acre for corn, $53 for soybeans and $73 for wheat.
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.
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.
Jim McCormick with AgMarket.Net says Mexico, Canada and China are the top three export customers of the U.S. and account for 40% of total exports. So, if these countries retaliate it could be devasting for trade and ag markets.
Mike Minor, Professional Ag Marketing, says the markets shook off tariff talk and saw positioning end of month and before first notice day Friday.
Jim McCormick, AgMarket.Net, says corn and soybeans slid on possible tariffs being placed on Mexico, Canada and China. Wheat ends higher on short covering.
Randy Martinson, Martinson Ag, says market reaction has been muted to possible 25% tariffs on Mexico and Canada and 10% on China on the first day of the Trump administration.
Kent Beadle with Paradigm Futures says soybeans built on Friday’s bullish reversal with talk China is looking for more U.S. soybeans. Cattle had a volatile session with a bearish Cattle on Feed Report and sorting through import restrictions on Mexican cattle due to New World Screwworm.
Brad Kooima, Kooima Kooima Varilek, says cattle futures shook off the bearish Cattle on Feed Report numbers with an announcement of New World Screwworm detected in Mexico. Soybeans built on the key reversal Friday on talk of China buying U.S. soybeans.