Early Christmas present for corn growers
The USDA released their Supply and Demand report last week indicating better demand and smaller supply than pre-report guesses. Though the report forecasts 2024 corn production will be the third highest in history at 15.14 billion bushels, the size of the crop was smaller than earlier estimates. December corn futures surged to the highest level in four months following the report. Corn demand continues to grow due to factors including exports, ethanol production and high fructose corn syrup in addition to the main use as livestock feed (including poultry). Corn prices calmed down a bit on Friday but remained well above last week.
Beef gets trimmed
Recommendations from the Dietary Guidelines for Americans, an official U.S. website, advised that Americans should eat less red and processed meats. Beef cattle prices have been rallying for months as ranchers have been holding back sales of their animals, fattening them up with cheap corn, expecting better profits as Christmas demands approach.
Hi-low, silver! Away!
Precious metals continued their upward trip until Thursday afternoon when silver got smashed and gold lost much of its luster. The silver bullet blew up over $33.30 per ounce but then collapsed more than $2.50 in a shocking race of profit-taking. One trigger was identified as slowing demand from China. Silver is famous for its volatility and for future demand since it conducts electricity better than any other element.
Congress struggles to harvest new Farm Bill before session ends
The Farm Bill is typically renewed by Congress for a five year period. The majority of the bill supports the agricultural community by providing for food security through the Supplemental Nutrition Assistance Act, crop insurance for farmers who face such issues as natural disasters and other environmental problems, farm commodity support and conservation. As the current session runs to its end, Congress continues to debate the method of funding for the bill as well as how the SNAP portion will be administered moving forward. This critical bill, with its origins in FDR’s New Deal, has historically fulfilled its original purpose to provide an adequate food supply, keep food affordable and protect natural resources.
Food for thought
If you ate today, thank a farmer. According to the U.S. Department of Agriculture, the average U.S. farmer feeds 155 people. In 1960 a farmer fed just 25 people.
CME midday prices — Price per bushel: January soybeans, $9.86; March corn, $4.42; March wheat, $5.52. February livestock per 100 pounds: Cattle, $192.00; hogs, $85.80. Metals per troy ounce: February gold, $2,678; March silver, $31.05. March copper per pound: $4.20. January crude oil per barrel: $71.30. December Euro currency: $1.0495. December S&P: 6,053.
Pinion Futures LLC (PF), a CFTC registered Introducing Broker and NFA Member (NFA #0284447) is a fully owned subsidiary of Pinion Risk Management LLC. Information contained herein is believed to be reliable, but cannot be guaranteed as to its accuracy or completeness. Past performance is no guarantee of future results or profitability. Futures and options trading involve substantial risk of loss and is not suitable for all investors. Clients may lose more than their initial investment. All information, communications, publications, and reports, including this specific material, used and distributed by PF shall be construed as a solicitation for entering into a derivatives transaction. PF does not distribute research reports, employ research analysts, or maintain a research department as defined in CFTC Regulation 1.71.