Grains Matter Chatter – Episode 231
Friday, December 27, 2024, 7:05 am – Thursday was a positive day for our markets. Spot corn closed up 5 3/4, spot soybeans closed up 12 1/4, spot winter wheat closed up 6 1/4 and spot spring wheat closed up 4 1/2. In the overnight trade all of our markets have fallen back on the negative side. Oil closed up $0.38 yesterday at $69.62 per barrel. It is stronger in trading again this morning with it now valued at $70.16 per barrel. Over the last 4 days our dollar has traded between a low of $0.694 US on December 24th up to a high of $0.700 on Christmas Day. This morning it is back near the bottom end of that range with it currently valued at $0.695 US.
Soybeans led our markets higher yesterday during a short trading day. The meal side of the market provided support with it rising above its 50 day moving average for the first time since late September. Soybean meal has recently been trading at 4 year lows with the supply side overwhelming this market. The rally yesterday was fueled by speculation that the supply side might not be quite so strong with some current dryness occurring in Argentina.
Soybean meal exports in the US have risen over the last 3 years and are projected at a new record again this year. Any perceived shortfall of soybean meal supplied from either Argentina or Brazil, who are the top two soybean meal exporters on the world market, is seen as positive for this market. With the expanded soybean meal production capacity in the US over the last few years they are able to supply any export demand that does come up.
The markets are pulling back this morning as possibly the positive trading yesterday went too high too fast. The growing area in Argentina that is reported as being dry is limited and the weather forecast has rain retuning over the next week. Hopefully today the market does not give back yesterday’s entire rally.
Friday’s thought: Laughter is the honey that sweetens life bitter moments!