MAR CORN

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The USDA issued its December WASDE report & carry-out was reduced 200 million bushel from November – due to robust export demand & ethanol usage! The mkt which had rallied in anticipation of a bullish report – furthered the gains by 5-6 cents -possibly challenging the 3-month high just over 450! Whereas the mkt has already rallied 40 cents from its harvest lows, its still just off 4 year-lows &relatively cheap! Should the S/A Crops not come in as big as expected, Corn Futures have solid rally potential – given the excellent foreign & domestic demand it has garnered!

JAN BEANS

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Jan Beans have been the “weak sister” at the CBOT due to the looming record crop from South America & the threat of Trump Tariffs once he is inaugurated! However, the “record S/A crop” has been bandied about for some time – has been pretty well priced in & may not be as big as predicted – depending on the climes down there between now & their harvest! Also, the tariffs may be just a bargaining chip Trump is using to pressure the border countries to tighten up their immigration policies! And with the mkt still hovering around 4 yr lows, there appears to be more upside than downside from current levels!

MAR WHT

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Mar Wht has been the beneficiary of bullish news out of Russia – both stricter export quotas & lower production due to unfavorable weather! That coupled with bullish ending stock #’s for corn on today’s DEC WASDE have lifted the contract into positive territory today! Previously, the escalating Russia-Ukraine War had added war premium to Wheat prices but now, it looks like that conflict is winding down as soon as Trump is inaugurated – so that premium has dissipated! But we feel, exports will pick up the slack – as wht – just like corn & beans – is coming off 4 year lows!

FEB CAT

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Feb Cat has been the beneficiary of several positive fundamentals as the contract prepares to challenge the contract highs just over 190! These include a robust 191 cash mkt, the US-Mexico border closure – precluding imports, improved exports, interest rate decreases & a commanding Trump win in November – which has rallied the DJI 3000 points & promises much-Improved beef demand in 2025!

FEB HOGS

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Feb Hogs were victimized yesterday by record open interest & record long funds which caused mass liquidation yesterday as futures dropped over $2.00! However, so far the prices are not following thru down today! Higher production & slaughter have also weighed on the mkt as of late! We feel demand will rescue this mkt from current levels as cattle strength, recent interest cuts, pork’s inherent price advantage & Trumps dominant win in Nov will all combine to push prices higher into 2025!

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AgMaster Report - Monday, Dec. 2
AgMaster Report - Tuesday, Nov. 19
AgMaster Report - Wednesday, Nov. 6