Corn pops, beans blow-up on crop report
Off to the races was the theme within seconds after the USDA crop report was released on Friday. This year’s total estimated production figures were far below pre-report expectations and the estimated stockpiles were surprisingly low as well. The 2024 corn production estimate was slashed by 276 million bushels to 14.867 billion. The U.S. 2024 soybean production estimate was down another 95 million bushels to 4.366 billion. The estimates included an average corn yield of 179.3 bushels per acre with beans at 50.7 bushels per acre. Corn rallied as much as 15 cents per bushel after the report, with beans blasting 30 cents higher. The report was not bullish for wheat so that the market remained nearly unchanged.
Trump seize Greenland his way
President-elect Trump has aggressively pursued acquiring Greenland, the autonomous territory of Denmark. The world’s largest island that isn’t a whole continent, Greenland provides a short trade and travel route to Europe as well as a major defense position against potential Russian or Chinese attacks, especially from the arctic region where both countries have reportedly been building up their militaries.
As global warming has melted much Greenland ice, mining of its rich mineral supplies has increased interest in the country’s oil, gas, coal and, especially, rare earth metals used in modern technologies including electric cars (a Musk concession) and in military applications.
Both the government of Greenland and the government of Denmark have voiced strong opposition to any U.S. move to acquire the island, which is a part of NATO through its connection with Denmark. Only sparse crowds greeted Donald Trump Jr. on his recent visit, which Greenland officials labelled as a stunt.
Trump craves canal control
Since December 1999, Panama has had control of the Panama Canal. President-elect Trump has voiced his desire to change that to U.S. control.
While Trump claims that China runs the canal, the government of Panama denies Chinese influence. Nearly 40% of U.S. container shipping passes through the canal, which provides a shortcut from the U.S. East Coast to Asia, Central and South America. The pathway also connects the U.S. West Coast to Europe.
In addition to cargo containers, motor vehicles, petroleum products, coal and coke, corn and other grains, soybeans and bananas are commonly carried through the canal.
Massive amounts of water are used to allow ships to pass through the canal locks, and drought conditions have caused slower passage in recent years.
CME midday prices: Price per bushel: March soybeans, $10.23; March corn, $4.70; March wheat, $5.30. February livestock per 100 pounds: Cattle, $199.00; hogs, $82.50. Metals per troy ounce: February gold, $2,717; March silver, $31.33. March copper per pound: $4.30. February crude oil per barrel: $76.50. February natural gas $3.97 per 10,000 MMBTU.
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