Grains in the Red This Morning

December corn is down 6¢ this morning.

January soybeans are down 12¢.

December CBOT wheat is down 8¾¢. March KC wheat is down 6¾¢. March Minneapolis wheat is down 3¢.

“Corn, soybeans, and wheat are all trading lower again this morning, but losses are minimal compared to previous sessions,” said Karl Setzer, partner at Consus Ag Consulting. “A simple lack of fresh bullish news is the primary reason for the market pressure, as is building concerns over future U.S. trade relations. This comes even as the U.S. continues to make daily flash sales. The concern is on future demand though, and this is negating the support from spot market selling.”

Earlier this week, a Farmdoc story discussed concerns in the agricultural industry that a new trade war with China may be in store after President-elect Donald Trump takes office.

This morning USDA announced unknown destinations are buying 176,000 metric tons of soybeans for the 2024/2025 marketing year.

“Improved weather conditions in South America have been negative for trade, but this morning we are seeing a slight shift in outlooks,” Setzer said. “More models are turning drier in several areas of both Brazil and Argentina in the 1-to-5-day outlooks as well as the 6-to-10-day outlooks and beyond. Analysts in South America remain optimistic on yields, but others are starting to lower expectations. The U.S. may see less competition from South America going forward anyway as interior demand in those countries is building, slowing exports. The U.S. dollar is again posting new highs today on both the spot contract as well as long-term charts. While this is hindering exports, it is very favorable for the U.S. import market.”

This morning the U.S. Dollar Index December contract is up to 106.42.

December live cattle are down 55¢. January feeder cattle are up 10¢. December lean hogs are down 45¢.

December crude oil is up 52¢.

December S&P 500 futures are down 5 points. December Dow futures are down 2 points.

Published: 10:25 a.m. CT