|
Today's rally was led by crude and oils, while export demand supported the complex overall with cheap US supplies. Soybean/Oil demand out of China remains strong, which is likely to persist into the end of the year ahead of the beginning of Trump’s second term in office.
Export sales today were strong, with corn exceeding expectations, and soybeans landing on the high end of expectations. Wheat was as expected. Soybean oil had huge sales as well. This morning the USDA confirmed the sale of 120,000 tonnes of U.S. corn for delivery to unknown destinations in 2024/25.
Reminder: It's hard to be extremely friendly long-term soybean futures in the midst of the Trump presidency, potential trade war with China and knowing South America is off to a great start and forecasted to increase bean production by 16 mmt from last year.
Tomorrow is the USDA Report. Estimates predict that combined U.S. plantings of corn, soybeans & wheat will hit a three-year low in 2025. Corn is seen up and beans will be down, though wheat will be very similar to the prior year.
SovEcon info shows Russian wheat stocks at 38.7 mmt, down 14% YoY despite stocks the previous quarter up 21% YoY. Russian stocks dropped sharply due to lower production and active exports.
The Federal Reserve approved a quarter-percentage-point interest rate cut Thursday, the latest step to prevent large rate increases of the prior 2 1/2 years from weakening the labor market as inflation eases.
Funds were thought to have been mixed with soybeans a buyer and wheat a seller.
| 
