STRONG Corn Demand + South American Dryness

Joe's Premium Subscription

Apple Podcasts

Futures and options trading involves risk of loss and is not suitable for everyone.

🌾 US Corn Exports Surge, Soybean Sales Fall 📊

US corn export sales surged last week, surpassing expectations with 1.7 million metric tons (67 million bushels) of corn sold 📦. This was a 46% increase from the previous week and 39% higher than the 4-week average 🌽. Mexico was the largest corn buyer for the week 🇲🇽. On the other hand, soybean sales dropped to a marketing year low at 978,400 metric tons (36 million bushels), falling 31% from the previous week and 47% from the 4-week average 🌱. China was the largest soybean buyer for the week 🇨🇳. Wheat sales exceeded expectations with 612,400 metric tons (23 million bushels) sold, a 34% increase from the previous week 🌾. Mexico was the largest wheat buyer 🥖.

⛽ US Ethanol Production Continues Strong 📈

US ethanol production remained robust last week, with weekly output of 1.11 million barrels per day 📊, showing a 3.4% increase compared to the same week last year 🌾. Ethanol stocks rose to 23.07 million barrels, a 2% increase from the prior week 📈. Implied gasoline demand was also up by 1% compared to the previous week, and 3% compared to the same week last year ⛽. Over the past four weeks, implied US gasoline demand has risen by 3.5% compared to the same period last year 🚗.

🌍 Argentina’s Corn and Soybean Acreage Adjustments 🇦🇷

The Buenos Aires Grains Exchange has revised its outlook for Argentina’s corn and soybean acres 🌾. Corn acreage is now projected at 16.3 million acres, nearly 5% higher than the previous estimate, driven by a correction in earlier forecasts 🌽. However, soybean acreage was reduced by 1.1%, now projected at 45.5 million acres, as farmers shift to more profitable crops 🌱. 85% of soybean planting and 81% of corn planting have been completed for the season 🇦🇷.

🌱 Brazil’s Soybean Crop Estimate Increased 🇧🇷

The USDA's Brazil attaché office has raised its Brazil soybean production estimate to 165 million metric tons (mmt) 🌾, citing timely planting and favorable early rainfall. The updated estimate is 2.3% higher than last season’s crop 🌱. CONAB, Brazil’s government agency, is forecasting the crop at 166.2 mmt, while the USDA projects 169 mmt 🌍. This is driven by larger planted areas and better-than-average growing conditions.

🌾 Russia’s Winter Wheat Conditions Deteriorating 🇷🇺

The condition of Russia’s winter wheat crops is forecast to worsen in January due to warmer-than-average temperatures and excess precipitation 🌧️. This has led to weakened sprouts, which consume unnecessary energy and sugars 🌾. 37% of Russia’s winter crops are in poor condition or haven’t sprouted yet 🌱. While crop conditions in southern Russia are expected to be average, soil moisture remains low, posing risks to yields 🌍.

💵 US Dollar Strengthens Amid Economic Growth and Tariff Concerns 📈

The US dollar is on track to post its strongest annual gain in nearly a decade 📊, rising over 7% this year according to the Bloomberg Spot Index. The dollar's strength is attributed to the robust US economy, which has reduced expectations of further Federal Reserve rate cuts 📉. Speculative traders are optimistic, holding around $28.2 billion in contracts betting on the dollar’s continued rise 💵. Additionally, Trump’s tariff threats have boosted expectations for the dollar’s performance, making it a key focus in global markets 🌍.

📅 Grain Markets Closed for New Year’s Holiday 🎉

Grain markets will be closed on Wednesday in observance of the New Year’s holiday 🎆. After a regular close on Tuesday, the markets will reopen at 8:30 AM CST on Thursday ⏰.

🔔 Stay Updated & Subscribe!

For more updates on grain markets, weather forecasts, and economic trends, don’t forget to LIKE 👍, SUBSCRIBE 🔔, and leave your thoughts in the COMMENTS below! Let’s keep the conversation going! 🌍💬