Written Commentary
MORNING COMMENTS
Geopolitics:
President-elect Trump took to X and Truth Social over the weekend, making statements about the threat of BRICS nations creating a new currency and how the US would respond with tariffs. BRICS held a gathering in Russia earlier this year discussing their partnerships but the the topic of creating a new currency was just a rumor and was not on the public agenda. The flow of debt between the US and most of those countries may be the biggest headwind for the introduction. Additionally, Trump met with Canada’s President Trudeau on Saturday to discuss the trade relationship between the US and Canada. No details have been released about the negotiation, but they both seemed to leave the meeting feeling better about the relationship and plan moving forward.
Microeconomics:
Retail spent up to $10.8 billion dollars on Black Friday which is up 10% from last year. This is a record amount of money spent on the day after Thanksgiving. This may imply a healthy amount of consumer spending. Many may be feeling slightly better about their finances compared to the last few years.
Ag Fundamentals:
Grain markets start the month of December slightly weaker. Export sales for both corn and beans are strong. China bought another 4.9M bushels of beans this morning from the US. That adds to the 36M+ they bought from us last week. Ethanol production hit a record high last week and many believe they will need to adjust both usage for corn and increase export numbers across the board. the December WASDE report will be released on Tuesday December 10th next week, at 11:00am CST.
December 8th Max Temperatures are seen below. Snow took to the northeast over the weekend, but the western half of the country can expect melting temps in the upcoming days.
EXPORT & WORLD NEWS
China bought another 134K MT of soybeans from the US this morning. Jordan is looking to purchase 120K MT of milling wheat and 120K MT of barley in an international tender. Turkey is looking to sell up to 100K MT of durum wheat.
Malaysian palm oil futures were down overnight 65 ringgit, at 4955.
Daily Trading Limits: Corn $0.30 (expanded $0.45); Soybeans $0.85 (expanded $1.30); Minneapolis Wheat $0.60 (expanded $0.90); KC Wheat $0.40 (expanded $0.60); Chicago Wheat $0.40 (expanded $0.60)
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