Written Commentary
CORN
Weekly corn futures chart have dropped from highs in 2022 due to improved World supply and drop in China import demand. US President elect has warned of tariffs against Mexico, Canada, BRICS countries and China. This could reduce demand for US corn exports. Potential for record 2025 South America corn crop also offers resistance in corn futures. US domestic cash market basis remains firm on slow farmer selling. Next week, USDA will issue new US and World Supply and Demand estimates. Trade looks for only a slight drop in US and World corn end stocks. USDA could leave South America corn crops unchanged from November but some crop scouts could see final crops higher if weather remains favorable.
SOYBEANS
Nearby soybean futures continue to consolidate near 10.00. Bulls feel large US nearby export commit and increase crush demand is offering support. Bears feel talk of record South America crop offers long range resistance. Higher US Dollar could limit new US soybean sales. US domestic cash market basis remains firm on slow farmer selling. Next week, USDA will issue new US and World Supply and Demand estimates. Trade looks for no changes in US and World soybean end stocks. Some feel USDA could increase US soyoil exports. USDA could leave South America soybean crops unchanged from November but some crop scouts could see final crops higher if weather remains favorable.
WHEAT
Wheat futures are near season lows but did rally Thursday on talk Russia wheat exports will drop to 11 mmt vs 23 last year and Rains in Australia could drop quality. Higher US Dollar could limit new US wheat sales. Next week, USDA will issue new US and World Supply and Demand estimates. Trade looks for no changes in US and World wheat end stocks. USDA could leave South Hemisphere wheat crops unchanged from November.
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