We kickoff the day with Export Sales at 7:30 A.M., S&P Global Composite PMI Flash, S&P Global Manufacturing PMI Flash, and S&P Global Services PMI Flash at 8:45 A.M., Existing Home Sales, Existing Home Sales MoM, Michigan Consumer Sentiment Final, Michigan 5 Year Inflation Expectations Final, Michigan Consumer Expectations Final, Michigan Current Conditions Final, and Michigan Inflation Expectations Final at 9:00 A.M., Kansas Fed Composite Index and Kansas Fed Manufacturing Index at 10:00 A.M., Baker Hughe Oil & Total Rig Count at 12:00 P.M., Cattle on Feed, Cold Storage, and Milk Production at 2:00 P.M.

While retail meat prices at or near record highs over the last year, retail egg prices have been climbing and are likely to keep rising in the coming months. Wholesale and retail egg prices soared in 2022 in a mix of inflationary pressures and flock liquidation due to the bird flu. Wholesale prices peaked at $5.00/dozen, and the national average retail prices stopped just below $5.00. Following a correction in 2023, the national average retail price bottomed at $2.00 and trended higher throughout 2024. Wholesale prices have become increasingly volatile and reached a record price last week at $6.23/dozen.

CBOT corn open interest and large speculative positions are nearing records, which makes the market vulnerable. US and world farmers have correctly rewarded the rally with cash sales. The speed of Brazilian soybean harvest and planting of the winter corn crop will accelerate into February. Private estimates show that the Brazilian soybean crop at record levels of 171-176 MMT’s. The sheer size of the crop will cause logistical/storage struggles by March. Today’s close is essential to see if the bulls can maintain their hold on the market. Also Argentina surprisingly dropped its grain and oil seed taxes late yesterday. Argentine farmers are not economically gleeful for export tax cuts. Weather the next two weeks will show if enough rain will help soil moisture. The preliminary CBOT open interest data for corn showed a gain of 31,537 contracts with total open interest close to a record 2,000,000 contracts. Buckle up your chinstrap and be prepared for a long liquidation in this overbought market, if the bullish fundamental news slows forcing bulls to drop their guard.

More By This Author: