MAR CORN 
A stunning, bullish shocker WASDE REPORT was announced Mon at 11am CST – where final 2024 corn yield was reported at 179.3 bpa (Nov – 183.1) – the 2nd biggest Nov-Jan yield drop ever! However, the yield # should really not surprise – given the extreme dryness to afflict the corn belt just before harvest! It’s just that the USDA refused to acknowledge it until the final report yesterday! Better late . . .! The net result was a seismic change in corn’s fundamental outlook from one of relative abundance to one where any potential weather issues from either hemisphere will substantially rally prices – especially from the historically cheap mid $4.00 area where Mar Corn currently resides! Not to mention the plentiful exports that have underpinned the mkt since harvest – running 25% over last year!
MAR BEANS 
The Jan WASDE was not nearly as bullish to beans with final yield at 50.7 (Nov-51.7) but stocks were very friendly at 380mb (Nov-470)! And that was still enough to spawn a 70 cent rally (990-1060) in Mar Beans to 3-month highs! And this despite a record Brazilian crop coming & a 10% rally in the US $ since harvest! However, the enormous Brazilian Crop has been pretty well dialed in! There are headwinds on the horizon – rains are forecast for Argentina/S Brazil, Trump is to be inaugurated 1-20-25 (tariffs?) & we have a 3-day weekend ahead in honor of Martin Luther King Jr (off-Mon) which could prompt position-squaring! Despite China’s slowdown, exports have been vigorous – Cumulative inspections are running 22% over last year & flash sales occur 2-3 times a week!
MAR WHT 
In sharp contract to corn & beans, the Wht’s on the Friday USDA Report were decidedly neutral! Yet, spill-over support from these 2 sister mkts – along with the current cold snap in the wht belt have helped rally Mar Wht 25 cents off its lows! US Wht supply fundamentals are bearish but world supplies will be shrinking in 2025! And after the sharp rallies in Corn (60 cents) & beans ($1.00), Wht is historically the cheapest grain of the three which should promote better exports!
FEB CAT 
Record high cash prices, cold temps into the Plains, positive technicals & shrinking fed Cattle supplies have all contributed to the bullish juggernaut that is Feb Cat! However, the mkt is overbought & the fund net long position is at a 6-yr high so a correction was in order & in fact has occurred! But we feel it will be short-lived as it doesn’t appear the the mkt has yet gone high enough to discourage demand!
FEB HOGS 
Germany’s detection of foot & mouth disease has resulted in South Korea, the UK & Mexico banning their meat exports – which should augment US exports! The current $6.00 rally (78-84) is nearing the 50% retracement of the $90-78 break from Nov-Jan! The Feb Hog mkt got cheap enough last week to attract solid demand & crater! And it did so in style leaving an upside gap on its surge upward! Also, pork’s built-in economic advantage over beef in the supermarket should help bolster demand!More By This Author:AgMaster Report – Tuesday, Jan. 7AgMaster Report – Tuesday, Dec. 31AgMaster Report – Wednesday, Dec. 11
