Written Commentary
CORN
Corn futures are higher and near 4.53. CH has now traded over the 200 DMA. Strong demand for US corn and drier Argentina forecast may be triggering new buying. Some could see USDA lowering US corn carryout in the January report. Weekly US export sales are delayed until Friday. Trade looks for export sales at 1,000-1,650 mt vs 1,174 last week. Livestock futures are mixed as trade is expected to be slow following the Christmas holiday. Feeder cattle futures remain discounted to the cash index. Some see a more bullish outlook in early 2025 for cattle. Lean hogs, meanwhile are down 0.6% to 83.875 cent.
SOYBEANS
Soybean futures are higher and near 9.97. There was a fire at a soybean crushing plant in Cairo IL. Plant crushes 150,000 soybeans per day. Argentine weather is expected to be dry in coming days while Brazil saw “good rains” during Christmas. Soybean traders are likely to focus on Argentina, as Brazil is about to start harvesting, Brazil is expected to export 105.5 million metric tons of soybeans in the 2024/2025 season, the country’s agricultural agency Conab says in a note. This year through November, the country’s soybeans exports totaled 96.8 million tons, down 46% from the previous period, due to disappointing production. Trade looks for export sales at 1,370-1,800 mt vs 1,424 last week.
WHEAT
WH is near 5.41. Funds could be covering short near yearend. The March contract is rising 1% today, after falling Tuesday and rallying on Monday. The global supply outlook is still tight with higher prices expected over time. Russia data showed the country’s 2024 wheat crop totaled 82 million metric tons. The largest producing area’s crop was down 30% from the prior year after spring frosts were followed by a summer drought. The government estimates 2025/26 wheat exports at 36.4 million tons, down from the USDA’s forecast this year of 47 million tons. Trade looks for export sales at 250-600 mt vs 457 last week.
all charts provided by The Hightower Report.
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