Inflationary pressures could drive support to ag markets | Weekly Commodity Market Update
This week Will and Ben discuss how higher than expected inflation measurements could benefit agriculture.
Market recap (changes on week as of Monday's close):
» March 2025 corn up $.09 at $4.96
» December 2025 corn up $.07 at $4.73
» March 2025 soybeans down $.13 at $10.36
» November 2025 soybeans down $.05 at $10.52
» March soybean oil flat at 46.07 cents/lb
» March soybean meal down $5.50 at $295.90/short ton
» March wheat up $.18 at $6.00
» July 2025 wheat up $.19 at $6.25
» March 2025 cotton up 1.48 cents at 67.11 cents/lb
» December 2025 cotton up $0.78 at 69.39 cents/lb
» October WTI Crude Oil down $0.26 at $70.74/barrel
Weekly highlights:
The Consumer Price Index came in up 0.5% month over month- higher than the 0.3% expected and the 0.4% experienced last month. The Producer Price Index was also higher than expected, but lower than the December index.
US retail sales were worse than expected- posting the largest monthly drop in nearly two years.
US crude oil stocks increased again this week- up 171 million gallons along with distillate stocks up just 5.7 million gallons. Gasoline stocks were down 127.5 million gallons with US implied gasoline demand up 3% from the week prior and 5% from the same time last year.
US ethanol production declined to 318 million gallons on the week- after a strong weekly production of 327 million gallons the week prior. The volume matches the same set during the week in 2024. Ethanol stocks declined 30 million gallons on the week.
Grain and oilseed export sales were mixed this week with corn and wheat sales of 64.9 and 20.9 million bushels, respectively being up week over week and at the top end of pre-report expectations, while soybean sales of 6.8 were below all expectations. Sorghum sales of 2.1 million bushels were the largest weekly volume since Mid-November.
Open interest in futures and options contracts of grains and oilseeds was down 1.6% week over week with producer and merchants decreasing their net short position 3.5% and money managers reducing their net long position a combined 55,387 contracts. It was the first net reduction of the complex in nearly 2 months.
Topics:
» Market recap
» Inflation numbers higher than expected
» Commodity markets could benefit from inflation
» Bill introduced to instate year-round E15
» Reports to watch
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