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Another down day today as Trump's pick for head of the Environmental Protection Agency raises concerns for biofuels. Trump chose former congressman Lee Zeldin. Zeldin's track record is not friendly to biofuels. Soybean oil saw the biggest losses as it is a main ingredient of biofuels. Additionally, Palm oils (including soy oil) prices came under pressure on talk that Indonesia may slow walk its planned increase of biodiesel blending requirements.
This morning the USDA confirmed the sale of 110,500 tonnes of U.S. corn for delivery to Mexico in 2024/25.
Marketing year to date wheat export inspections exceed the seasonal pace needed to hit USDA's target by 12 million bu, up from 8 million the previous week. Marketing year to date soybean export inspections exceed the seasonal pace needed to hit USDA's target by 56 million bu, up from 45 million bushels the previous week. We're currently exceeding the seasonal pace needed to hit USDA's target, despite China's sluggish buying pace. It still has bought very little of its shipment needs for December and January, with little evidence to this point of a change in the pattern since the election. Marketing year to date corn export inspections exceed the seasonal pace needed to hit USDA's target by 26 million bushels, up from 20 million bushels the previous week.
The U.S. Dollar continues to strengthen creating headwinds for the commodities as a strong dollar makes U.S. exports more expensive. This is damaging to wheat especially. Cheap Russian wheat prices and yesterday's chart damage (2 month low) brought another day of double-digit losses to that sector today, with corn prices being dragged lower by the big losses in soybeans and wheat.
The U.S. crop progress and condition report will be released later today. The trade expects the last remnants of harvest to be wrapping up.
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