Corn is down 3, soybeans are down 13 and wheat is down 15 to start the day. The combination of the Fed raising rates and a change to slightly wetter weather in Argentina has the market lower today.
The Federal reserve signaled that there is a possibility of faster than expected rate hikes and stimulus withdrawal. Minutes from the Fed’s December meeting had shown that a tight jobs market and unrelenting inflation could require the U.S. central bank to raise rates sooner than expected and begin reducing its overall asset holdings. This has put some pressure on commodities overnight.
Total DOE weekly fuel ethanol production declined slightly this week to 1.048 million barrels per day, down from 1.059 mln bpd last week but still above 935k bpd on the comparable week last season.
USDA Export sales were: 48,600 mt of wheat, 256,100 mt of corn, 382,700 mt of beans, 22,800 mt of sorghum, 3,900 mt of beef and 19,400 mt of pork. Slowest sales of the season.
The forecast for weather in South America for the next 7-10 days is very hot and dry in Southern Brazil and Argentina. There is however a significant change to wetter weather from Jan 14-22nd. This rain must happen, but for now the forecast will drive the market. It is going to be really hot over the next week in Argentina with temps in the 100’s. This is the most stressful weather they have seen in years.
Have a safe day!