A look at the future of ag land in the U.S. | Weekly Commodity Market Update for 12/19/23
This week Will and Ben dive into the future of farmland in the U.S.
Market recap (changes on week as of Monday's close):
- March 2024 corn down $0.04 at $4.77
- December 2024 corn down $0.02 $5.08
- January 2024 soybeans down $.09 at $13.27
- November 2024 soybeans down $.04 at $12.84
- January soybean oil down 0.60 cents at 50.64 cents/lb
- January soybean meal up $4.90 at $413.20/short ton
- March 2024 wheat down $.11 at $6.09
- July 2024 wheat down $.18 at $6.25
- January WTI Crude Oil down $1.87 at $71.73/barrel
Weekly highlights:
- Argentina reinstituted their export platform early last week after previous suspending it. Argentina’s current fell in value by nearly 119% going from 366 pesos to one dollar to 800 pesos to one US dollar. Their Congress is also considering a proposal to raise export taxes. Corn and wheat from 12% to 15%.
- US ethanol production fell just slightly last week to 1,074 thousand barrels las week. Ethanol stocks rose to a 16-week high on back to back weeks of relatively high production. Corn used for ethanol for the marketing year is up 45 million bushels or 3.2% from the same period last year.
- The Federal Reserve made not changes to interest rates of 5.25-5.50 during their December meeting as expected. The FEDs quarterly dot plot chart suggests 3 quarter point rate cuts in 2024.
- Ag export sales were mixed for the most recent week of data. Corn and wheat export sales were supportive while soybean sales continue to remain in the 35–45-million-bushel range. Everything was within pre-report expectations.
- The Biden Administration released their decision to use a methodology supportive of utilizing ethanol as well as edible soybean and canola oils as a feedstock in the production of sustainable aviation fuel. The administration plans to finalize all details by March.
- The National Oilseed Processors Association reported their members crushed 189 million bushels of soybeans in November. The volume was slightly down from the all-time monthly record set in October, but still 3 million bushels higher than pre-report trade estimates. Soybean oil stocks exceeded expectations for the first time since April.
- US grain and oilseed export shipments increased week over week for corn and beans while grain sorghum and wheat shipments declined. Corn and soybean volumes were on the top end of expectations.
Topics:
- Market recap
- Market enters holiday lull
- Future of U.S. ag land
- Reports to watch
Learn more about what's happening in the markets: https://brownfieldagnews.com/ag-markets/
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