We kickoff the day with MBA 30_Year Mortgage Rate, MBA Mortgage Applications, MBA Mortgage Market Index, MBA Mortgage Refinance Index, and MBA Purchase Index at 6:00 A.M., Current Account at 7:30 A.M., CB Consumer Confidence, Existing Home Sales and Existing Home Sales MoM at 9:00 A.M., EIA Energy Stocks at 9:30 A.M., 17-Week Bill Auction at 10:30 A.M., 20-Year Bond Auction at 12:00 P.M., and Dairy Products Sales at 2:00 P.M.

Photo by Waldemar on Unsplash

The USDA’s monthly update on food expenditures showed that there was a total of $201.3 billion spent on food in October, a 3% increase from last year and a record large total amount for the month of October. There was $88.4 billion spent on food at home, which was down 1% from last year, while $112.9 billion was spent on food away from homeor a 6% increase over a year ago. Total dollars spent on food has away from home was down slightly from the peak in July, but still a record large for the month of October. Total dollars spent on food has increased 36% since 2029 as the dollar purchasing power continues to decline while nominal disposable income increases. Grains are mixed to higher, with volume centered on nearby soybean contracts. Its “wait and see” with respect to Brazilian rainfall this week as heavy showers are projected to impact Mato Frosso and Goias in the next 24 hours- and the GFS & EU solutions enter Wednesday still in poor agreement over totals coverage in norther Brazil. There is increasing evidence to suggest the actual beginning of the Brazilian monsoon season lies ahead, nut the need for soaking precipitation is immediate and the performance of rainfall in the next 72 hours is critical. Ag Resources (ARC) also noted that little to no rain has fallen across the driest areas of Brazil. Temps on Tuesday were recorded between 95-110 degrees, with readings of 103-110 recorded in Mato Frosso do Sul and southern Mato Grosso. Temps in northern Brazil have been mostly above 100 degrees , 100 degrees everyday since last Thursday, and periodically since the beginning of the month. Normal high temps in norther Brazil in December range from 86-90 degrees. Brazil’s boost to biodiesel blend volumes beginning March 2024. We may very soon see higher food & energy prices with commercial shipping being targeted in the Middle East with the usual suspects. Commercial shipping lanes have been cut off completely or changed from moving through the Suez Canal and traveling around Africa adding 40 days to final destination. Shipping companies are adamant about the risk and their maritime insurance cost will go up and passed on to the consumer. In the overnight electronic session the March corn is currently trading at 473 ¾ which is 1 cent higher. The trading range has been 474 ½ to 472 ½.

More By This Author: